Your letters: A counter-productive strategy
Broking companies that use zero or minus commission rates to make premiums competitive are undermining the sustainability of the insurance broker market.
Using commission levels to reduce premiums may see them appear on aggregators' cheapest insurance tables and so bring short-term gains but the shortfall in commission has to be taken up by revenues from other areas of the business. With new reviews and regulation casting shadows over current revenue streams of the broking market, senior management must be questioning the sustainability of this kind of strategy.
In particular, companies that are offsetting minus commission strategies with revenue
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