Insurance broker ‘is bypassed’

An insurance brokering firm has claimed an insurance company was bypassing it and contacting its customers directly, against common market practice.

In a judicial protest, Allcare Insurance Brokers Ltd claimed Citadel Insurance plc had sent letters and flyers to its clients promoting insurance products for which Allcare was an agent.

Allcare said it “is a basic principle and constant practice in the insurance market that where the insured has appointed an insurance broker, the insurance company must communicate with the insurance broker”.

“It is well accepted even by our jurisprudence that the broker is considered the agent of the insured and his obligations are principally towards the insured,” it added.

The company’s behaviour was causing harm to the insurance market and detriment to the insured, who could be prejudiced without the assistance of their insurance broker.

Allcare Insurance Brokers are holding Citadel responsible for any damages. Lawyer Paul Cachia signed the protest.