I have always had the greatest respect for Tony Cornell. It is with regret, therefore, that in reading his article on GISC and having come from their London roadshow, I take great exception to his view that the title “insurance broker” is an outdated term and “the role is to seek the lowest price”.
Might I be so bold as to suggest that his comment is typical of a lot of insurers – who think that obtaining the best terms is obtaining the lowest price. Chambers Dictionary defines a broker as “one employed to buy and sell for others” with no mention of “lowest price”.
Those of us who, since the formation of Corporation of Insurance Brokers in 1908, and more particularly since the passing of The Insurance Brokers Registration Act in 1977, have been proud to use the title insurance broker will be very disappointed that the distinction that Act imparted between insurance broker and any other sort of insurance intermediary will be lost.
With stronger support from the insurer market over the past 22 years for those who are entitled to use the insurance broker title and perhaps with a little more refinement and flexibility on the part of the IBRC (for example, using the margin of solvency now being suggested) there would be no need for a complete overhaul of the insurance intermediary profession.
So come on Tony, let’s not run down the title insurance broker. They were strong supporters of yours when you were in business and don’t deserve it.
Malcolm Bennett FCII JP
Chambers and Newman insurance brokers