Independent Insurance was “systematically underpricing” its commercial lines business by between 20% and 50%, Royal & Sunalliance (R&SA) has alleged.
The insurer said it had uncovered extensive evidence of underpricing after examining former Independent business it had been offered by brokers.
R&SA said it had netted more than £100m of business since Independent collapsed into voluntary liquidation on June 17. This breaks down to a gross written premium of £60m for commercial business and £40m for personal lines, priced on Independent terms.
But R&SA said it had to reprice most of the risks it had accepted because the Independent had discounted its premiums so heavily. It cited one example of a £2m risk that Independent had allegedly quoted for £300,000.
Former Independent staff interviewed for jobs by R&SA have said Independent set its staff “aggressive” growth targets.
R&SA UK commercial underwriting manager Colin Short said: “Commercial insurance is a complex business and you cannot run a commercial insurance company by piling it high and selling it cheap like a cut-price supermarket.”
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
