Warning over ‘ghost brokers’
There’s a worrying trend being reported from the UK where a rising number of fake insurance brokers have been targeting consumers looking to make savings on rising auto premiums. The Association of British Insurers says that people are typically selling deals in bars, clubs and university campuses but some of the bolder fraudsters are using websites and newspaper adverts. Consumers buying policies from the unauthorized ‘brokers’ are left without cover, often only revealed in the event of a claim, and could cost the insurance sector millions of dollars as drivers involved in accidents who believe they are covered turn out to be uninsured.
Insurance industry employment higher in US
The latest data from the US Department of Labor Statistics shows that employment across the insurance industry was higher in June compared to a year earlier. P&C carriers added 3,400 jobs (up 0.6 per cent) in June compared to the previous month but the yearly increase was 6,500 (1.2 per cent) to a total of 527,900.
In the agent/broker sector there were 21,800 more employed in June 2015 from a year earlier, a rise of 3.1 per cent. There were 734,000 brokers and agents employed in total.
In the life/annuity sector there were 16,500 more employees in June 2015 compared with the same month in 2014. That’s a rise of 4.8 per cent to a total of 361,900.
Only auction site enters insurance market
A New Zealand online auction site is entering the insurance market by partnering with Tower Insurance. In another example of tech-based companies looking to disrupt the insurance industry Trade Me Insurance will offer home, contents and auto insurance. It claims that its service offers a more flexible approach to insurance products, allowing consumers to pick what meets their individual needs. Trade Me also owns an insurance comparison site called LifeDirect.
