Danny Walkinshaw sums up our biggest issues of this week; from Google’s big purchase to Nick Houghton’s plans for Broker Network, and all you could hope to know about motor
When Google makes a play in your market, should you be worried? The internet search engine giant was the talk of the market when it snapped up BeatThatQuote last month, raising eyebrows and suspicions.
Ever since, it has remained quiet about its plans for the price comparison site. But this week we uncovered more details about Google’s motives for spending £37.7m on a business that has yet to reach the kind of levels as the big four aggregators – GoCompare, Moneysupermarket, ComparetheMarket and Confused. The insurance market will be keeping a close eye on whether Google can turn BeatThatQuote into the next major force in the price comparison market.
Houghton’s challenge
How do you replace Grant Ellis? The Broker Network founder was the face of the Harrogate-based network for more than 15 years. But this week, we spoke to the man stepping into his shoes: Nick Houghton. The enthusiastic network managing director has a big job on his hands to make sure brokers continue to find the proposition of networks attractive. Broker networks rose to prominence in recent years as brokers sought alternatives to consolidation. The Broker Network, the largest network in the market and part of the Towergate family, is on the lookout for new blood to continue its expansion.
The challenge for Houghton and other networks in the market will continue to be whether they can differentiate from their rivals. The choice for brokers is staggering, with around a dozen networks all vying for brokers to sign up. Consolidation among networks has been predicted for some time and this could be crucial for networks to survive in a crowded marketplace.
The lowdown on motor
There’s no hiding from the motor insurance market. It’s been at the forefront of the industry for the last two years because of excessive bodily injury claims and fraud pushing up rates. This week, we delved deep into the facts with our ‘all you need to know motor guide. You can read our brand new Knowledge section online.
PPI rejection
This week saw the High Court reject the banks' request for a judicial review against the FSA’s mandate on payment protection insurance (PPI). PPI has been the scourge of insurance brokers lately. PPI complaints are the driving force behind massive complaints to broker’s FSCS levies. So after this latest ruling, we asked what it means for brokers.
PI’s big payout
At the start of the week, we revealed how professional indemnity insurers have been ordered to pay more than £38m in long-tail PI claims for the solicitors assigned risks pool (ARP). A handful of insurers are likely to take large hits, including Zurich, Travelers and Chartis. But some insurers are believed to have reserved for such eventualities.
More disposals?
Finally, Giles this week said it was to sell off its non-core life sciences business to focus on other key areas. As consolidators build towards exits, either by flotation or sale, could we see more disposals like this as they shape their businesses in preparation?
Danny Walkinshaw is digital news editor of Insurance Times.
Email: danny.walkinshaw@insurancetimes.co.uk
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