Staff used wrong postcode to cut premium and claim bonus
Co-operative Financial Services (CFS) has sacked eight staff and called in police after uncovering irregularities in new car insurance policies, Crains Manchester Business reports.
It claims advisors from different parts of the country used incorrect postcode details when issuing as many as 2,500 policies so that premiums were lowered, allowing them to hit sales targets and earn higher levels of commissions.
CFS said that none of its customers would be affected by the situation and that all policies that had been issued would continue to be honoured.
Internal investigation
A spokesman from CFS said that it had “identified a small number of financial advisers who have been accepting motor insurance new business policies based on an incorrectly-rated premium”.
“The police have been notified of the situation whilst an internal investigation is undertaken which to date has resulted in eight financial advisers being dismissed.”
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