Insurance

blueparasol

I've just asked several brokers to give me a quote for insurance. Two refused me (for different reasons, and in fact, when I checked, Broker B said that Broker A's reason was no problem, but there was now a different reason for refusal), and the third accepted me. Now, what I didn't know until after I'd got their answers back was that it was exactly the same firm of underwriters doing this, so why I got three different answers back is beyond me, especially as I gave them exactly the same information. Anyhow, it all seemed to be fine, because Broker C had had the policy accepted. This, BTW, was after I'd told Broker C of the problems I'd had with Brokers A and B, and they'd rung up the underwriter and been assured that neither of the two reasons for refusal actually applied.

Anyhow, to cut a long story short, Broker C went to chase up the policy documents today, only to be told the underwriters were refusing it. This time, the reason is that Broker C wasn't the first broker I'd approached, and the underwriters operate on a 'first come, first served' basis. They also claim they 'had no recollection' of the conversation they'd had with Broker C above! Admittedly, Broker C could be lying to me, but given how detailed her answers to me had been, I don't think she's the liar.

What I'd like to know is, are those underwriters allowed to do this? Surely they can't dictate which broker a customer can buy from? If all three brokers are allowed to offer their policy, then how can they turn around and say that only one of them is allowed to actually sell it, and it's pot luck which one the customer decides to ring up first? Particularly as there's no way of knowing when you contact an insurance company who their underwriters are, and I had no idea it was the same company.

They clearly don't know their donkey from their elbow here, and it's particularly concerning because I know several people who've taken out similar insurance with these underwriters, and if reasons A and B apply to me, they apply equally to them, thus presumably their insurance isn't worth the paper it's written on.

I'd be grateful for any thoughts on this.

dunstonh

insurance companies offer different versions of their products to different brokers or intermediares. So, intermediary/broker A may not have the version of product available to B.

Nowadays most consumers do not deal with brokers but deal with intermediaries and they deal with the brokers.

You dont say what insurance you are on about. One assumes that it is non-standard and requires individual underwriting. Hence the referral to underwriting.

blueparasol

Thanks for this. It was indemnity insurance - quite a standard type. All three brokers had the same form given to them (and hence to me), so I don't think the idea of different versions can apply.

Since I posted, there have been further developments. The company has been forced to take me on, because their reason for refusal (that they wouldn't deal with this broker, despite having accepted the application from them earlier) seems to break competition regulations, so the broker kicked up and sorted it all out for me. It'll be interesting to see if they allow me to renew next year.