More ado about nothing

Concerning a letter in last month's issue of Professional Broking (PB, January 2005) that likened broker commission to Asda's mark-up on a can of beans. Although historically a much-used analogy, it is in fact misleading.

In the grocery industry, Asda is a retailer. In the insurance industry the insurance broker is not the retailer, but the agent/representative of the customer in seeking out and purchasing on behalf of the customer the product (from the insurance retailers).

I do not and cannot see what the fuss is about with regard to the customer receiving transparency in respect of the insurance broker's fee. In continuing the analogy of Asda, imagine the scenario of a 'professional grocery buyer'.

Should this agent be commissioned by a customer to purchase their groceries, I would imagine there would be a huge outcry if this professional grocery buyer did not highlight his fees from the eventual grocery bill to the customer.

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- To air your views and comments, please write to the editor, Richard Adams, at: Professional Broking, Haymarket House, 28-29 Haymarket, London SW1Y 4RX or email: richard.adams@incisivemedia.com.