Distribution disaster?
Q. How can brokers treat customers fairly when they are owned by an insurer?
It is an understandable reaction that such an intermediary is just a 'front' for the acquiring insurance company to build its own book of business but that this proposition is unlikely to enable the broking firm to grow.
However, if the FSA had not been comfortable with the deal, they would not have sanctioned it. Do not forget that any proposed acquisition is a notifiable event to the regulator.
Secondly, the brokers will have substantial accounts with carriers other than the acquiring firm
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