I read in today’s Insurance Times that the FSA is concerned about insurance brokers failing to disclose financial relationships with insurers. Apparently this is having an adverse impact on consumers, as you might expect.
For example, broker A could receive contingent commissions from insurer B if he placed a certain amount of business with it, thus making him more likely to place that business with that insurer, whether or not it was in the client’s best interests.
The FSA is looking at forcing brokers to make a full disclosure of all commissions to put the spotlight on potential conflicts of interest.
Keep going FSA and perhaps the same open and accountable business values might enter the car showroom arena. Too many women motorists feel vulnerable here and I think it is appalling that there is clearly one price for those that don’t haggle but a lower one for those in the know.
Only a matter of time before ‘fair for all’ becomes a regulated selling norm, surely?
