Annual renewal helps instill loyalty

In response to David Martin's view from the top (PM, 29 January, p11), I find it somewhat strange that an experienced broker should advocate the demise of the annual review and renewal contract.

The insurance industry benefits from formality: brokers surely earns a fair proportion of their not-inconsiderable income from the preparation of clients' insurance portfolios. They also benefit from review meetings by having the opportunity to be informed of tangible and intangible changes in the business. If we left it to either party to initiate the meeting a thorough review could take place at infrequent intervals (I can hear professional indemnity insurers rubbing their hands at a self-imposed hardening market).

Policyholders, in particular those from the commercial sector, need the formality of the review meeting to analyse their insurance needs.

With the clock ticking on Financial Services Authority regulation, it would seem it is not the time to step back from client contact and expose the industry to the watchdogs' favourite phrase 'customer care'.

The sacred cow should perhaps be the broker that takes customer loyalty for granted.

Andrew Cuthbertson ACII, Sales & marketing manager, AIUA.

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