by Branko | 4 Jul 2019 | News
Please note that the full interview/article (which will include contributions from others) is available direct from the provider’s site and that copyright applies to the whole article – therefore my contribution only has been quoted.
From the Insurance Times
Branko Bjelobaba, founder of compliance consultants Branko Ltd, told Insurance Times that this might be because a lot is going on in general insurance and that the FCA want firms to “really think” about their response.
He warned that brokers and insurers need to think about the issue carefully, as the FCA is on the lookout for irregularities and inappropriateness involving bad products, poor service, lack of transparency and even why distribution chains might take so long.
“A lot of firms don’t engage with the FCA,” Bjelobaba added, be it because of apathy, fear, laziness or inertia. He referenced the regulator’s “live and local” event last week in Cambridge where only seven firms turned up.
But the regulator is on a mission to change this.
by Branko | 22 May 2019 | News
Please note that the full interview/article (which will include contributions from others) is available direct from the provider’s site and that copyright applies to the whole article – therefore my contribution only has been quoted.
From the Post Magazine
Brokers may also face issues beyond arranging alternative cover. Branko Bjelobaba, an insurance compliance consultant, said that by using poorly capitalised unrated insurers, brokers could leave themselves exposed to law suits.
“Most of these offshore insurers, because capital requirements are less than they are in the UK, can afford to discount their premiums heavily because the amount of solvency they require is less,” he said.“But then if they go insolvent, as has happened in Denmark and Gibraltar and other countries, then the broker is at risk, because they could be sued by their clients on a professional negligence basis.
“For brokers thinking of using offshore – unless their risk is really odd, why would you think it’s a good idea to place offshore? I don’t think it’s a good idea at all. “You have to explain to a client: it’s because I want bigger commission, you want a cheaper deal so I will place you offshore, are you happy with that? The client needs to buy in to the decision rather than be told ‘this is a regulated insurer within European Union or European Economic Area’.”
