The FCA expects that insurance brokers can demonstrate that they have carefully considered the insurers that they place business with. They give the following examples of what they believe brokers should consider as part of their insurer due diligence:
- Insurers’ Solvency and Financial Condition Report: A key figure and indicator is the solvency coverage percentage.
- FCA and Financial Ombudsman Service (FOS) complaints data.
- Audited accounts of insurers.
- FCA Register: Check if the insurer has passported in on a branch or a services basis.
Broker Direct Insurer Due Diligence
At Broker Direct we have long understood the importance of completing adequate Due Diligence on the Insurers we are considering using and recommending to our brokers.
The Broker Direct Insurer Due Diligence process is robust and includes our Security Sub-Committee and Compliance team completing the following checks on an annual basis:
- Checking Insurers Solvency and Financial Condition Reports.
- Checking the Credit Rating of our Insurers (if applicable).
- Checking both FCA and Financial Ombudsman Service complaints data and completing trend analysis.
- Checking the FCA register to ensure the insurer has appropriate permissions.
- Checking the Insurer has a Data Protection License.
- Checking Companies House.
We believe by completing the above regular checks we are ensuring the insurers we recommend are not only financially sound, but also meet the Broker Direct expectations of Insurers.
Due to the checks we complete we have never dealt with an insurer who has failed.
For your reference below are links to our insurers ‘Solvency and Financial Conditions Reports (SFCR)’ and both the FCA and Financial Ombudsman Complaints Data:-
|Insurer/MGA||Insurer SFCR||FCA Complaints Data||FOS Complaints Data|
|AIG Europe Limited||Click Here||FCA Complaints Data||FOS Complaints Data|
|Accredited Insurance (Europe) Limited||Click Here|
|Aro Underwriting Group||Click Here||Click Here|
|Sunworld Travel||Click Here|
|Covea Insurance Plc||Click Here|
|Premier Insurance Company Limited||Click Here|
|Royal & Sun Alliance Insurance Plc||Click Here|
|Zenith Insurance Plc||Click Here|
|Zurich Insurance Plc||Click Here|
|Lloyds||Lloyds SFCR||FCA Complaints Data||FOS Complaints Data|
|WRB Underwriting||Click Here||FCA Complaints Data||FOS Complaints Data|
|Amlin UK Limited|
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