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[ChrisKnottIns]

Originally Posted by Dancake

What amazes me even more is that a broker can offer cheaper premiums than going to the insurer direct. This begs the question, just how much profit are insurance companies actually making if they can afford to cut deals with middlemen?

Just to address this one point - they are different routes to market for the insurer.

Simplistically, if an insurer wants you to go direct they need to spend alot on advertising to attract you. If they use brokers, it's they who have the advertising costs instead. In a niche market too, like car enthusiast and owners clubs, the brokers already have the relationships with the affinity partners and are better placed to build relationships with the end customer. Insurers replace advertising costs for commission to brokers and, hopefully, benefit from enhanced sign-up rates from a section of the market they really desire. Does that make sense?

N

[sv70]

Sorry but this just sounds like gobblydygook language by insurers to confuse or over complicate the issue which just boils down to they are in the driving seat to dictate what you will pay or go elsewhere,all the insurers will say stuff like this to justify their generous mark up margins,all i can say is thanks chris knott for your contribution financially to the club,that's about it.