What is the motivation behind the Lloyd's Market Association's (LMA) call for full commission disclosure?
One clue can be found in an interview given by LMA chairman Andrew Kendrick this month.
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What is the motivation behind the Lloyd's Market Association's (LMA) call for full commission disclosure?
One clue can be found in an interview given by LMA chairman Andrew Kendrick this month.
To compete with growing markets on the international scene, Kendrick says underwriters need to take a closer look at relationships with brokers.
Kendrick said: "One problem is that underwriters give too much brokerage away.
"I believe we can't afford to pay more brokerage in London. Brokers have been too keen to take advantage of that. We have to address that cost.
"We have to question why [as insurers] we don't deal more directly with brokers in the US, or, say, France."
Nick Pointon, chief executive of Lloyd's broker PYV, slammed Kendrick's comments: "He has a surprising lack of respect for distribution channels," he said.
Backchat wonders if Kendrick should risk biting the hand that feeds...
