Tuesday, 8 July 2014
On the 4th July TEn celebrated its transition to Employee Ownership (EO) on what is, annually, National EO Day. I was particularly grateful to be invited to go and speak about our decision to embrace EO elsewhere, otherwise I would doubtless have been required to adopt some form of silly American fancy dress; as did most of my colleagues!
The question is, why have we done it?
Friday, 27 June 2014
I attended a recent Question Time event in London, run by Insurance Age and sponsored by Axa. It was a pleasant and interesting evening and, indeed, the following buffet and the choices of wine weren’t too bad either.
Inevitably a question was asked of the panel and Amanda Blanc in particular about commission disclosure. I think one could say that the panel claimed to be open minded in relation to this issue, however, the audience seemed largely unpersuaded about the comparisons and analogies used to argue that such a move might be the right way forward.
Monday, 23 June 2014
Industry figures, particularly those from bigger brokers and continental owned insurers, cannot but periodically help themselves but to venture once again to suggest the professional benefits of mandatory commission disclosure. This is despite the FSA in its twilight years having commissioned two consultancy studies to prove the case in favour; they failed to do so both times.
I think I am right in saying that every client of a TEn member with an annual spend in excess of £100k on insurance - and there are quite a few now - is dealt with on the basis of nett rates and fees. Between £50k and £100k there are a fair few more besides and some others even below £50k, so we are not opposed to the practice, at the right time and at the right level, it is the correct method of remuneration.
Sunday, 16 February 2014
I would contend that insurance broking is not a profession and general insurance advice does not consitute a financial service.
Misconceptions in both respects stem, I believe, from over-exposure to the local newspaper during our formative years. I certainly remember local solicitors, accountants and brokers featuring periodically in the Folkestone & Hythe District Herald following their departure to Brazil with a suitcase full of other people’s money.
Thursday, 25 April 2013
The market is expecting another round of broker consolidation and restructuring in the next 12/18 months. Poor economic conditions and further regulatory control will undoubtedly force the pace of M&A activity, but little is heard of the impact on those ancillary relationships that surround a lot of brokers.
Many experienced practitioners have found a safe haven in the form of an Appointed Representative (AR) arrangement, that that official or unofficial, with a known broker ‘friend’ where they can continue to trade in the manner they have been accustomed to. They rarely tend to have formal agreements in place with their broker partners, preferring to rely instead on ‘gentlemen’s agreements’.