Exclusive - The newly-merged Folgate/Towergate business (see p4) is on the look out to buy a loss adjuster, according to chairman Peter Cullum
The plan is part of a drive to move business away from composite insurers.
Cullum explained that Towergate Partnerships is set to announce a deal with a Lloyd's/London market insurer soon for small liability products.
The deal will be modelled on one that Folgate did with Wellington earlier this year for property.
"Wellington has an expense ratio of 6%," said Cullum. "While composites typically have expense ratios of 14%. We know which one is more attractive to us. Repeating the Wellington-type deal is very attractive to us."
Chief executive Andy Homer said: " We won't move loads and loads of business away from the composites, but we are worried that their service is not up to scratch."
"There is a renewed appetite for binder-style business from the reinsurance-type market that was not around a couple of years ago because of 9/11," added Homer.
"To service the claims we could outsource or we could buy a loss adjuster. My preferred route is to buy a loss adjuster," he said.
