Beware of uneven roads ahead.
Brokers' revenues are being reduced by the increasing tendency for insurers to offer automatic ULR and the trend towards after-the-event cover. Simon Threadgold highlights the potential hazards of the mixed signals currently being sent by the industry.
News that the Co-operative Insurance Society is now providingautomatic uninsured loss recovery to over a million motorists will not
come as music to brokers' ears.
Derek Wood, CIS motor insurance manager, proclaims: "If all motor insurers
followed our example by providing before-the-event cover as standard, this
would eliminate the need for success fees and for after-the-event
premiums."
Maybe so, but it would also deprive brokers of a considerable revenue
stream. In recent years, the mark-up of
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