Insurance Brokers 'Face Conflict Of Interest' On Virus Claims
Law360, London (May 21, 2020, 3:48 PM BST) -- Insurance brokers make most of their income from insurers rather than customers — and this challenges their regulatory responsibility to act in the best interests of their clients, a consultancy warned on Thursday.
Mactavish, an insurance consultancy, said in a report that 80% of the money earned by brokers comes from insurers and only 20% from clients.
The London-based consultancy said that, because a part of commission is linked to premium rates, brokers are benefiting from increases in premium prices that had started to be seen across the market as the coronavirus pandemic took hold.
"Policyholders appoint insurance brokers to represent...
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