RSA firm shamed for attacking brokers

RSA-owned Link4 has been ordered to apologise on Polish TV and pay £21,329 for attacking insurance brokers in adverts.

Polish authorities clamped down on direct motor insurer Link4 which produced adverts which showed brokers in a highly negative light.

According to The Polish Chamber of Insurance Finance Intermediaries, the adverts showed grimacing and desperate men, reinforced with slogans saying: “Insurance agents throughout Poland are suffering – already 300,000 drivers left their agents and moved to Link4.”

Other slogans said: “Tears of insurance agents are not surprising. Already 300,000 drivers left their agents and moved to Link4.”

The Warsaw Appellate Court sustained a previous judgement and yesterday ordered Link4 to apologise to insurance brokers on television and in the press for their offensive advertisements. Link 4 was also ordered to pay £21,329 (100,000 Polish Zloty) to the Royal Castle Museum in Warsaw.

The court also upheld a banning of most of the adverts. Link 4 was oringally sued by PIPUiF, the trade body for brokers and financial intermediaries in Poland.

In a statement, PIPUiF said: “Many insurance agents felt offended by these commercials, one of which suggested that he insurance agents are fond of the so-called Religa tax, a levy increasing the prices of policies although in fact the intermediaries’ associations protested against the introduction of that tax.

“It was for those reasons that the Polish Chamber of Insurance and Finance Intermediaries decided to sue Link4 in order to defend the dignity of that professional group and demand the correction distorted facts.

“The court of appeal decided that the commercials, showing agents as greedy, antisocial people who do not deserve respect or pity, did not attempt to develop the company’s market position based on presenting the advantages of the direct insurance system, but rather tried to achieve that goal by discouraging consumers to take advantage of the traditional mode of buying insurance policies.

“The court agreed with the standpoint of the petitioner claiming that the advertisements are offensive and threaten the market position of insurance intermediaries and also that they infringe the principles of good business practice.

“It’s worth reminding that Link4 suggested in its advertisements that the company’s products were cheaper since the insurer did not commission intermediaries. However, surveys** have shown that the prices of Link4 policies were not among the cheapest on the market, and a representative of Link4 admitted during the proceedings that the company paid commission on every policy – to the employees.

“In a word, the judgment stating that the Link4 commercials are beyond doubt an infringement of good practice and depict insurance agents in a negative light will be enforceable as of 22 February. That means the insurer is obliged to publish, on three occasions in ”Auto Swiat”, ”Newsweek Polska”, ”Dziennik”, ”Gazeta Wyborcza”, ”Wprost” and ”Forum”, and also in channel 1 of the Polish television (between 6 and 10 p.m.), its regret due to the use of advertising which violates good practice and apologies to insurance intermediaries. The first publications and television broadcasts are to start within 14 days following the judgment’s entry into force, i.e. on 8 March this year. Additionally, Link4 is obliged to pay by that time an amount of PLN100,000 to the Royal Castle. The contested commercials are banned as of 22 February.”

Another case is pending regarding a different series of commercials, instituted against Link4 by PIPUiF. The intermediaries are also contemplating filing a class action lawsuit.

An RSA spokesman was unable to comment when approached by Insurance Times this afternoon.