Egypt – Clash between Insurance Companies and Brokers
Thursday, 05 21 2015, Category: Insurance and Reinsurance, Country: Egypt
Insurance companies and brokers have clashed as companies have resorted to hijacking brokers’ business, through what can be called management operations, meaning that companies ignore brokers when renewing coverage for a client and deal directly with the client himself. This proactive step taken by insurers serves two purposes: first, cutting expenses through the reduction of administrative and production costs, which commissions make up a large strategic portion of, and second, realizing their plans within limited financial means, or a set target of the budget, using management operations.
“Al Mal” raised this issue with both insurance companies and brokers to understand each party’s opinion regarding management operations and the reasons behind companies defending them and brokers rejecting them. “Al Mal” also discussed this with an insurance expert who provided an objective point of view regarding this issue and shared whether he supports this practice or not.
Source: Al Mal Newspaper