“Bruce Hepburn, chief executive of Mactavish, called for the role played by brokers in negotiating between insurers and their customers to be reviewed and for transparency to be improved.
“Policyholders appoint insurance brokers to represent their interests but few understand that in a hard market their broker earns more money as premiums rise, presenting an obvious conflict of interest,” he said.
“Brokers also receive substantial premium linked revenue from services provided to insurers creating a second potential incentive to put the interests of insurers above those of clients.”
