I was interested to read the article,  “Insurers counter lure of authorities’ mutuals” (News, 1 November)), which  correctly highlighted the growing threat of mutuals to the traditional insurance market’s dominance of the local authority sector.

Clearly the likes of Zurich, St Paul and AIG have become so concerned by reductions in their share of the market in this sector they have resorted to offering the  authorities “special deals” to prevent them from straying.

But what are these special deals? Are they in fact just cheaper deals? If that is the case (and knowing the insurance industry’s complete lack of ability to innovate) – and I suspect it is – then surely this is just capitalism at  play?


Ed Rogers