Insurance Co.s- They won't like this (1 Viewer)

[Emmit]

Hi All,
Just gleaned this from the Daily Mail.
Apparently, from April 1st (and this ain't no joke for the Insurance Co's,) they will have to post how much you paid LAST YEAR when they send the renewal for THIS YEAR.

I'll love to see how they try to hide that increase when renewal time comes;
Article here'

http://www.dailymail.co.uk/money/ca...itons-overspend-2-4bn-car-insurance-year.html

 

[Jasz]

Interestingly I have recently had my renewal notification from Comfort and it had last year's on it, went up by £1. With a couple of alterations (addition of an alarm and 8000m rather than 10000m) it's now £50 less

 

[iandsm]

I was going to hit the "like"button but that doesn't cover how much I like, like like like like like like this news.

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[Jim]

I was going to hit the "like"button but that doesn't cover how much I like, like like like like like like this news.

You could have used the LOVE BUTTON

 

[Peter JohnsCross MH]

Did you know that if you use broker they have to tell you how much commission they get paid !

Usefull to know and you can say................. oh better sharpen your pencil then and reduce my premium!

Peter

 

[nicholsong]

Did you know that if you use broker they have to tell you how much commission they get paid !

Usefull to know and you can say................. oh better sharpen your pencil then and reduce my premium!

Peter

Peter

I wonder whether that applies to those 'Brokers' that have some Underwriting authority(used to be called 'binders') but are not themselves the Underwriters as evidenced by the Policy.

Does the declaration of Commission only have to appear on the renewal notice or also the policy? What about business conducted on the telephone?

So many of those in the MH insurance market come into that category.

Geoff

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[Peter JohnsCross MH]

As far as I am aware it covers all parties offering insurance where they get a commision payment.
It also covers brokers arranging mortages!

===================================

General law on fiduciaries and agents
Under general law on fiduciaries and agents, brokers and certain other insurance intermediaries are not permitted tomake a ‘secret profit’ and should not put themselves in a position where their own interests conflict with the duties they owe to their principals.

They are liable to account for any secret profits.
Where a customer employs an insurance intermediary by way of business and does not remunerate the intermediary,and where it is usual for the firm to be remunerated by way of commission paid by the insurer out of premium payable by the customer, then there is no duty to account for commissions which do not exceed the usual market rate but if the customer asks what the firm's remuneration is, it must inform the customer.

Case law has clarified that, in the context of a client who has paid a fee, an intermediary may only be entitled to retain commission if the client has given informed consent. In addition, an agent or fiduciary is always obliged on request to disclose any remuneration and other benefits received as a result of acting on the principal’s behalf.
The practice whereby a broker who acts for the insured also undertakes work for, and is remunerated by, insurers is well established in the UK, particularly in the London Market and on subscription business.

The broker must however reconcile its duties and remuneration with its primary obligation to the insured, the general law on fiduciaries and theFSA’s regulatory ‘Principles for Business’ below. In essence it will need to establish disclosure, consent and systems to
manage potential conflicts satisfactorily

 

[crabman]

this is a most interesting post, it may well apply to another charge I have been ripped off for £350.00 I have already complained as yet not had a reply from the company, ombudsman next move

 

[EX51SSS]

On renewal of my Moho policy, I ALWAYS ask how much I paid previous year and it's usually increased by £20.00 but they then say, they'll do the legal cover foc this year which is £20.00 so same as last year. Price constant for last 5 years

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[golly]

You could have used the LOVE BUTTON

That sound a bit naughty sorryits the red wine talking

 

[Spriddler]

Cuh! I find it hard to believe that some people do not know what they're paying for their current year's insurance.

 

[EX51SSS]

Cuh! I find it hard to believe that some people do not know what they're paying for their current year's insurance.

No actually, I understand because lots have a life and turning up a particular insurance with multiple vehicles isn't a 30 second job. Certainly not for me but then again, I whinge at every quote.

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[Spriddler]

No actually, I understand because lots have a life and turning up a particular insurance with multiple vehicles isn't a 30 second job. Certainly not for me but then again, I whinge at every quote.

Maybe if one has multiple vehicles.
For the very reason that I have a life, plus a m/h, two cars and three motorbikes each has an envelope in a folder with its V5, MOT (where needed), Policy Details, Renewal Invitation Quote (needed to prove NCB when changing insurer) and breakdown/recovery policy. In any case I renew online by email and can go to these docs on my laptop in 20 seconds.
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[sedge]

Well if you ask me what we pay for anything, I won't know off the top of my head - but either of us can soon tell you - if we happen to want you to know! Otherwise, you'll never find out LOL

You've always had to declare commission when you charge a fee for insurance services - the policies are them written with net premiums, ie the premium that the broker actually pays the insurer anyway.

We didn't look at anything in the first place earning less than £1,000 commission, and we wouldn't convert that to a fee basis unless it was a lot more than that.

Conversely - it is legitimate in certain circumstances to charge a higher fee than the commission would have been - because you need to do more work for that client - handling claims that they self-insure, or have a claims settling agreement with the Insurers for anything under £x - or do extra security work, or or or.

 

[EX51SSS]

Maybe if one has multiple vehicles.
For the very reason that I have a life, plus a m/h, two cars and three motorbikes each has an envelope in a folder with its V5, MOT (where needed), Policy Details, Renewal Invitation Quote (needed to prove NCB when changing insurer) and breakdown/recovery policy. In any case I renew online by email and can go to these docs on my laptop in 20 seconds.
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Yes that's absolutely superb. However most times a renewal drops through my letter box at home, I'm elsewhere I'm the country. It'd probably make it a smidgen easier if I had access to my house that day or the next few days or the postman knew where I'd be on any given day but I don't know that but SWMBO can tell me and I like to deal with it promptly.
I applaud your filing system but the vast majority don't have that type of reference system and you know that.
Most people deal get their renewal invitation and they've probably no idea where their documentation for their current vehicles and this is now compounded by not having to produce documents if and when required. Having re read what I said, I appreciate I could have put it somewhat better but wine never helps in composition.

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[normanandsue]

I cant understand why people wouldn't know what they paid last year, don't they keep receipts?

 

[Spriddler]

@EX51SSS I only began my disciplined record keeping since I found dealing with most ins co's by phone and penetrating their music on hold, press-button, security questions 'customer care' system in order to get anything done was like..........
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[Deleted member 29692]

Does the declaration of Commission only have to appear on the renewal notice or also the policy? What about business conducted on the telephone?

So many of those in the MH insurance market come into that category.

Simple. Don't conduct such business on the telephone.

Any company that won't deal in writing doesn't even get a chance to quote for my business.

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[gus-lopez]

Cuh! I find it hard to believe that some people do not know what they're paying for their current year's insurance.

Think yourself lucky you don't live here with automatic renewal, they won't tell you what the renewal premium is until one week before renewal but by then you cannot legally cancel it as you have to give one months clear notice.