Dual pricing will trigger a strong, hard market says Perkins Slade chairman
Julie Page, head of Marsh’s UK commercial practice, said brokers were negotiating in a dual-pricing market that was “absolutely bonkers”.
Page was responding to comments from David Slade, chairman of Perkins Slade, who was critical of dual pricing.
Page said brokers were being put into a corner, adding: “They have no choice when dealing with their customer but to reach out for the best price.”
David Slade, chairman of Perkins Slade, said dual pricing would trigger a strong hard market.
“It is really, really sad that insurers will quote two levels of premium for the same risk. It will mean that the market will have to bounce hard in the way it has bounced in the past.”
Fortis managing director Mark Cliff agreed rates were not hardening enough in commercial lines because of dual pricing.
Page and Slade’s comments come a month after similar remarks from Broker Network’s chief executive Grant Ellis. He claimed that dual pricing resulted in a 15% to 20% difference between renewal terms and those available to new business, and called on the industry to address the issue as “a matter of urgency”.
Page said Marsh had not ruled making further additions to the ProBroker network.
She said: "It will have a lot to do with the whole proposition.
“We are an organisation that will be looking for discipline, and discipline around the placement strategy,” she said.