The London's Financial Conduct Authority (FCA) taking a closer look at the UK insurance market could result in brokers' commissions being forced down, according to a report from Fitch. The report notes with competition being the main focus of the FCA, commissions could cease to rise - to the benefit of insurers. It's also possible larger brokers take a hit if the regulator establishes any anti-competitive practices are taking place. Over the last 12 years, acquisition costs for insurers have risen from 17% of gross-written premiums to 22%. Rising brokers' commissions account for this, to some extent.
The UK's Financial Conduct Authority (FCA) taking a closer look at the London insurance market could result in brokers' commissions being forced down, according to a report from Fitch. The report notes with competition being the main focus of the FCA, commissions could cease to rise - to the benefit of insurers. It's also possible larger brokers take a hit if the regulator establishes any anti-competitive practices are taking place. Over the last 12 years, acquisition costs for insurers have risen from 17% of gross-written premiums to 22%. Rising brokers' commissions account for this, to some extent.