Blanc warns on commission disclosure:: Insurance Age

I would like to be a bit more specific than Mr Blanc. THE ‘danger gap’ is the difference between what brokers are PAID and what their clients’ perceive they are worth!

That is, what value does a client place upon the quality of advice and service they receive from their broker?

It should tell the commercial/corporate insurance-buying public all that they need to know, that the industry has been trying to resist the “threat” of commission disclosure for a long time…

…surely TRANSPARENCY is only a threat if you have something to hide!?

For Mr Blanc the “danger gap” was the space between what brokers earned and what clients perceive that they earned.

via Blanc warns on commission disclosure Insurance Age.

Biba did disappoint (rather than surprise) when Eric Galbraith, at their conference in May this year, vowed to resist EU regulatory calls for “hard disclosure”. I was not impressed and voiced my opinion at the time!

For an industry involved in risk, we have become remarkably proficient at lecturing others on the subject whilst failing to take our own advice! Ignoring or avoiding inconvenient truths about our own shortcomings is standard practice.

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“Insurance isn’t the problem”: correct…the problem is endemic in FS

I like Eric Galbraith and don’t envy him the task “at hand”. Well done for not ducking a real issue for the industry in your Guest Blog BUT please, please, please – for the sake of the hard working, customer-focused, brokers out there – don’t shirk from the message that, unless they start “dieting and exercising” they will not be fit enough to survive in a more testing climate!

It would be as wrong to believe that the problems are exogenous as it would be to suggest they are the fault of Aggregators, any “deal” with BIBA or the input of individuals within the BIBA Executive!

One of the earliest recorded “team builders” put forward this helpful piece of advise a long time ago: “Physician heal thyself” (Luke 4:23). But to do so does require a more holistic perspective because the success or satisfaction of the various parties are inextricably connected: interdependent.

‘Insurance tops the list of complaints’ blares the headline of an article in the Money section of this weekend’s Financial Times featuring the latest annual review of personal finance disputes from the Financial Ombudsman Service (FOS). 

via Insurance isn’t the problem – Insurance Age.