Insurers upset brokers by undercutting on price

A row is brewing in the insurance industry between companies and the brokers which sell their products. Apparently, many insurers now sell directly to the public, drastically undercutting their brokers' prices. The May issue of Irish Broker (IB) magazine gives an example of the price differences in premiums quoted by the same insurance company directly and through its broker network. "One particular case outside Dublin involved a married couple in their twenties with a claims-free, clean-driving record, and full licences. They were driving a 98 BMW 316i. The broker in question quoted a particular premium of £1,092.29. The other arm of the same insurer quoted for the exact same risk £488.48."

The June issue of the same magazine confirms that brokers are encountering the problem throughout the State. Although consumers who shop around now may receive greatly reduced premiums, the Irish Broker's Association believes that such rates are unsustainable.