Broker ban for underinsuring clients

The FSA has banned two insurance brokers for underinsuring clients and offering free life cover without informing providers.

The regulator found that Porter Insurance broker Andrew Porter deliberately underinsured clients and retained the surplus money for his benefit.

He also misled companies into paying for unsuitable cover and falsified documents to mislead clients and insurers.

In a separate case, the FSA banned Alexander Brincat and withdrew the permissions of his firm Wise Owl Services, which specialised in life cover and buildings insurance.

Between September 2009 and August 2010, Brincat failed to tell product providers about the company’s strategy to provide free life cover to customers and failed to monitor the high cancellation of policies sold by the firm.

Brincat also failed to ensure that Wise Owl had sufficient resources to pay premiums for customers who had agreed to free life cover and failed to pay clawback commission when cover was cancelled.