Viewpoint by Malcolm Harvey, Lorega Chairman

While the media may at last to be moving on from the initial feeding frenzy of doom laden stories about the credit crisis, the full extent of its impact on our industry is yet to become clear.

Certainly the stock market wobbles of late seem more to do with the fear of impending global recession than the credit crunch. In insurance some products will actually perform better in a recession. But while much debate goes on about the ultimate effect these events will have on insurance, many are knuckling down and consolidating their positions by focusing on driving growth and income.

For brokers the need to assess and engage with potential revenue streams is pressing, which brings Loss Recovery Insurance (LRI) to the fore. This not only generates revenue at point of sale, but saves brokers precious time and money while keeping clients happy at the point of claim. Small wonder the dramatic reversal LRI can bring about in broker’s profit and loss accounts is proving timely for many.