Airmic

EU SECTOR ENQUIRY - STATEMENT FROM AIRMIC

AIRMIC strongly welcomes the EU Commission’s support for full transparency in the disclosure of broker remuneration. The report rightly recognises that there are areas of the market, especially those serving the SME sector, that are poorly served in this respect. We hope the enquiry will lead to a situation where all buyers of commercial insurance routinely and automatically receive full disclosure as to how much of their premium the broker receives.

We welcome the fact that the Commission has responded to representations from ourselves and others to the effect that multi-year insurance agreements are a legitimate method of providing continuity and stability and are not inherently anti-competitive.

We will study the Commission’s comments on co-insurance and differential pricing within the subscription market. As a general comment, however, we regard the subscription market an efficient vehicle for spreading risk without reducing competition.

For further details, contact Mark Baylis, Complete Communications, +44 (0) 23 8034 9719, markbaylis@aol.com