Covers must be made available for any type of risk

BIBA has already highlighted issues with aggregators/comparison web sites but there remains another challenge for our sector. We continually come across individuals and businesses where it is difficult to obtain cover for them.

Interestingly we recently had a consumer on the phone trying to find a specific type of cover. Even when we had talked them through where on our web page the consumer could find a broker who would be able to help there was a lack of recognition that ‘Find a Broker’ meant access to the cover needed.

Needless to say we will add a few words to our web site to highlight and better direct the individual and business to understand that ‘Find a Broker’ is synonymous with access to the right insurance protection. We are in fact just about to launch our new web pages prior to our annual conference and exhibition at the end of April. This will include a new and more responsive ‘Find a Broker’ section.

So not only do we have organisations inferring that they are comparing the insurance market for the best price when what they are actually comparing is a ‘skinny’ policy wording to achieve the lowest price, but we also have a generation who believe that a better deal is nothing to do with cover, who the actual insurer is providing that cover or even their willingness or ability to pay claims. I have just noticed that one of the better comparison sites now refer to the right cover at the right price.

This mentality is now moving into smaller commercial business not only because of technology and commoditisation but also due to the cost of retention and the impact of regulation on intermediaries. The recent discussion paper (DP08/2) on transparency, disclosure and conflicts of interest in the commercial market from the FSA could also impact how some insurance protection is sold and I have yet to be convinced that the customer is getting the right deal at all.

Many brokers have responded by investment in technology, the formation of underwriting agencies, MGAs or the use of non-advised sales to compete.

BIBA will continue to promote access to the right insurance protection through brokers and to ensure that the regulator and government appreciates the concept that access to insurance does not just mean buying cover at the lowest price.

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