However sentiment for Allianz, which picked some of the GRP business, remains strong as experts say they can see the broker’s side of events too.
Regional brokers have expressed overwhelming support for Aviva in the aftermath of its decision to withdraw all GRP’s agencies.
Insurance Age spoke exclusively with firms outside the Top 100 and the brokers all steered clear of criticising Allianz, which has stepped in for a number of GRP brokers, as well as flagging their understanding of the broker’s situation.
“I don’t think it has done them [Aviva] any harm and is potentially a warning to other large consolidators who might be pushing for higher commissions,” said Tony Knight, director of Knightsure in Southampton.
Knight observed that removing the agency facility was a “strong step”.
Big decision
He explained that without knowing the underlying story it was hard to come to a definitive conclusion but pointed out the business decision would have boiled down to the numbers.
“Aviva on the one hand is chucking away a huge amount of business presumably.”
Adding: “GRP presumably are confident of replacing the business in other markets. It is clearly a big decision on both parties.”
The final split between the two companies came after Aviva had already cancelled agencies with Marshall Wooldridge last year and Alan & Thomas earlier this year.
The latter was heavily linked to Allianz.
GRP-owned Higos has since expanded its partnership with Allianz and, after the interviews were held, Zurich has done the same with Sagar Insurances, Abbey Bond Lovis and McGrady.
Ethos
Another Midlands-based broker, who preferred not to be named and deals with both Aviva and Allianz, said he “admired” Aviva for “sticking to their guns”.
“We commend their stance but you can see it from both sides of the fence,” he continued bringing GRP into the discussion.
“I can understand their ethos and philosophy.”
As for Allianz he commented: “They are one of the top insurers and we have nothing against them at all.”
Overall his view was that Aviva was an insurer “prepared to stand up to the bigger boys”.
Adding: “At least everyone knows where they stand.”
Books
However he warned that rolling over a book of business was never plain sailing.
“You’ll always get issues and it is never as straightforward as everyone would lead you to believe,” he stated flagging that Allianz may have to take some unusual risks that it did not particularly want.
Meanwhile, Alan Jayne, joint founder of Baker Jayne in Meriden near Coventry predicted that the ramifications were still to fully unfold with more to come from the story.
His summation was “well done Aviva for taking this stance” even though his business does not have an agency with the insurer.
Baker Jayne is a Marsh ProBroker member and Jayne also flagged that Aviva had a track record of disengaging with networks over the years.
“If indeed the rumours about the demands for higher commissions are true, then maybe Aviva should be hailed as the heroes in this episode, rather than the villains,” he suggested.
While accepting that in this instance “Aviva’s loss is certainly Allianz’s gain” he also pointed out that he had not heard any real noise from disgruntled brokers following the announcement.
Hands
Finally a source in the North told Insurance Age that the decision was encouraging as it created a level playing field.
Again, while referencing support for Aviva’s stance, the broker noted that he did not know the precise demands that had led to the situation.
His company trades with Aviva and Allianz and he opined that what any provider did with other intermediaries was entirely up to them.
“If that is what they want to do it doesn’t bother me, I’ve got enough to concern myself with,” he concluded.
“Or they can pay it [higher rates of commission] to everyone in which case I’d clap my hands with glee thank you very much!”
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