A word from Robert Marshall
Hello, thank you for visiting the Trident website.
My name is Robert Marshall and Trident is my company I wanted to introduce myself to you as a lot of bad news is hitting insurance at the moment. As a result of the lack of Business Insurance pay-outs the Financial Conduct Authority has taken action. I wanted to put some perspective on it.
First Insurance isn’t rocket science it’s a market like any other based on probabilities really like a Bookmaker.
Underwriters have buckets of historical data to hand and pricing models, and the odds on you’re likely-hood of making a claim over the course of a year sometimes up to 3 years.
But they can’t call it odds, even if you consider only paying £300 for £250,000 of house cover or a say £600 for £10 million of public liability when you look at it like that some of the odds are pretty amazing.
Financial Conduct Authority
Ok, so on Business Insurance, the Insurers have paid out on some policies but now everything has stopped pending the result of a High Court case brought against a lot of Insurers by the Financial Conduct Authority no less. I believe the ruling will be delivered in September and £100’s of millions rest on it.
Personally I think some Insurers did not make it clear exactly what was covered and will have to cough up. Some savvy lawyers have funding to fight irrespective of what the Court decides.
Does it matter? Only insofar as… if your business has been crucified you believe you should be paid out then yes it certainly matters after all why buy insurance if the small print handicaps you?
The treating of customers fairly is embedded in what we do and yes human error mistakes can happen but this is different and it’s now about the level of exclusion and exemptions and what’s appropriate ( I hate that word as it’s so condescending!)
Judgment day for Insurers
The judgement will have an impact on everything Insurers do and that probably means some will throw in the towel.
Others will cut back on what they offer but Insurance will still be there and just as cut throat competitive as ever. Yes it’s all about money and whilst shareholders don’t like losing money they are also insured and are forcing the fight as the bog standard denial of liability hasn’t cut and policy holders are angry.
Usually Courts offer a clear win or lose and I suspect it will end a marginal draw with claimants ahead.
Here and in this once every 3 week column I want to put a human perspective on things as a 100% Independent Broker. Yes we deal directly with Insurers but we are not beholden to them and only sell their policies. We play a balanced role in negotiating, but looking after our Clients interests first and foremost is our modus operandi.
My hope is that you will find what I say interesting and thought provoking and get back to me if you do or don’t agree.