Aviva wants a discussion with brokers around profit sharing arrangements on personal lines books
Aviva is considering profit sharing with brokers on personal lines.
Head of broker personal lines Sam Hudson said: “The advantage of a profit share is it gives both parties an interest in sustainability of the book.”
One way of profit sharing could be to give brokers some kind of remuneration if they select and place books, especially in motor, which hits targets on key performance indicators. One indiciator could be loss ratios.
Hudson said: “People have shied away from it traditionally because there was quite a long tail on private motor business because of some of the bodily injury, so it’s quite difficult to know how some of the claims will work through over a period of time.”
Hudson said Aviva had no plans to push ahead with profit sharing immediately, but rather wanted it as a topic for discussion with brokers.
“It’s not something we’re going to go out an actively do because it needs a lot of thought and consideration from all parties,” Hudson said.