In these days of large liability premium increases, it appears that the estimate and declaration system has been 'mothballed' by many insurance companies.

This in itself is highly dangerous for both brokers with integrity and insurers as:

  • It exposes brokers to the loss of existing customers
  • Exposes insurers to an abuse of the estimate and declarations system
  • It leads to significant differences in quotations offered between brokers.
  • I have recently been involved in several cases where a competing broker has gone to the market with wages and turnover estimates that are significantly lower than those offered by ourselves as the holding broker.

    While I am in the process of educating my executives in the art of managing increased estimates,

    I feel that a competing broker is able to offer a lower estimate with impunity, as a declaration will either not be requested or not actively chased.

    I would be grateful for those brokers of a like mind to raise the awareness of this matter with your insurer partners, or strive to find a more suitable alternative rating structure.

    Stuart Love.
    Managing Director
    Thomas, Carroll (Brokers) Ltd