7th March 2013
BROKERS UNDER PRESSURE: PROBABLY A GOOD SIGN FOR LIFE INSURANCE CUSTOMERS
It seems that, since some of you have started to wonder that perhaps you aren't getting the best value all the time, the Irish brokerage sector has started to feel the pinch.
Good for Life Insurance Customers
We think it's a terrible thing that peoples jobs are threatened by this, however, this is often the case when the balance in an industry is returned to favour the consumer. Similar things have happened in the not to distant past for the newspaper industry. The availability of a lower priced viable alternative means that business practices have to change and margins have to be narrowed and that's always good for the consumer.
At Low.ie you, the consumer, are foremost in our minds and we have the lowest prices for Life Insurance in the Irish Market. So get a quick quote online for Mortgage Protection, Life Insurance, Serious Illness cover or Income Protection and see how much you could be saving yourself. Oh and don't forget to register with us to save your quote.
Report: Brokers under financial pressure
The Irish financial intermediary and brokerage sector is feeling the pressure of the downturn with some 17pc of firms reporting losses, according to a Central Bank report today.
The Central Bank is responsible for supervising 3,238 Retail Intermediaries, which vary in size and activity with firms reporting over 5 million policies/financial products held by their clients.
"Based on information provided by retail intermediaries to the Central Bank, there appears to be some financial strain in the sector, with 17 per cent of firms reporting losses," said Central Bank Director of Consumer Protection, Bernard Sheridan.
"I would urge firms to ensure that while working to return to profitability, no actions are taken which could lead to additional risks for consumers. In particular where firms grow due to acquisition they must ensure that they adapt their systems and controls to reflect the demands of a larger business and ensure compliance with consumer protection regulations."
Retail Intermediaries employ over 30,000 employees, with firms reporting over 5 million policies/financial products held by their clients.
Gross income/turnover (from regulated and unregulated activities) ranges from less than E10,000 to more than E1 million, with more than half of the firms reporting income levels below E60,000.
Income from regulated activities ranges from E0 to over E7.5 million, with over 4 per cent earning in excess of E1 million.
The report found that 17 per cent of firms have reported a loss in the previous financial year, with over 3 per cent reporting a loss in excess of E100,000.