Europe

Increased broker transparency

The largest UK buyers of corporate insurance are increasingly proactive in demanding information from their brokers, according to a survey by the Association of Insurance and Risk Managers (AIRMIC). The research found a substantially greater will by brokers to reveal details of their remuneration, including payments from underwriters, and a widespread view among buyers that their fees represented reasonable value. AIRMIC said that the responses came overwhelmingly from insurance buyers at FTSE 250 companies. The Association also noted that its members spend more than £4bn p.a. on insurance or insurance-related services and, with some exceptions, deal with London market brokers rather than provincial ones. However, AIRMIC remains concerned that these benefits are available mainly to the large, knowledgeable buyers. “Smaller companies are not always receiving the same consideration from their brokers. There seems to be a two-tier market emerging, which if it persists could result in much of the good work we have seen so far being undone,” says AIRMIC spokesman, Andrew Cornish.