Holding renewals - Terms of endearment
My customer terms of business document shows that I normally provide commercial quotations from a range of insurers, yet the Financial Services Authority has queried whether or not this is still accurate at policy renewal, when I recommend renewing with the holding insurer. What do they mean?
This is one of the issues highlighted as part of the Financial Services Authority discussion paper, Reviewing Commission Disclosure for Commercial Customers. Its research has indicated that such customers routinely over-estimate the amount of market analysis carried out by intermediaries at renewal - as well as underestimating the level of commission earned - and the feeling is that, where you take a decision just to invite with the holding insurer, you should advise the customer that you have
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