Safeguard motor caravan scheme is closing its full broker service and introducing a fee-based system.
From 1 October brokers will only be able to pick up a one-off 15% fee for providing new customers. This replaces Safeguard's old 10% commission basis.

The decision has angered many of its existing brokers.One Safeguard broker said: "It's eliminating brokers in one fell swoop."If the likes of Norwich Union or Royal & SunAlliance did the same, they would put us out of business."

He was worried that insurers might be tempted to follow Safeguard's example.The change resulted from the sale of the scheme to the Swinton group in March.Swinton chief executive Patrick Smith defended the move and said it was not open to negotiation.

About seven-eighths of Safeguard's business was sold direct."Is 15% negotiable? No, not really," he said.He added: "It isn't ungenerous at all. We want to keep working with our brokers."The 15% fee will be paid on all new business cases provided to Safeguard after 1 October. Renewals, mid-term adjustments and claims will then be dealt with direct.

Swinton made the changes to improve management and customer service.