# Setanta Insurances



## DecTrader (20 Feb 2008)

Has anybody any experience of doing business with Setanta Insurances? 

We are considering using them for commercial vehicle insurance and I was wondering what their track record is like.

Thanks all.


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## chum (21 Feb 2008)

not great, i insured a commercial truck with them in nov 07, i informed the broker that i intended to sell this truck in jan 08 and would be cancelling the policy . the broker informed me that there would be no problem with my refund, not the case, policy cost 800 euro ,refund 300 euro, a very expensive lesson.


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## DecTrader (21 Feb 2008)

Chum - Thanks for the info.


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## ailbhe (21 Feb 2008)

chum said:


> not great, i insured a commercial truck with them in nov 07, i informed the broker that i intended to sell this truck in jan 08 and would be cancelling the policy . the broker informed me that there would be no problem with my refund, not the case, policy cost 800 euro ,refund 300 euro, a very expensive lesson.


 
This is the case with most insurance policies. If you cancel the policy within the first year you will be charged short term rates which works out expensive. It is so the company can cover the cost of setting up the policy etc. It's not exclusive to Setanta. Nearly all companies do that.

As for the original question they have only been in the market for a few months. They are VERY competitive. I haven't had any claims experience with them yet but their customer services are good. 

If the difference is huge I'd go for it. If not, maybe wait until next year when the company has been around a while and people have more claims experience through them.


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## chum (21 Feb 2008)

i had asked the broker if there would be a heavy penalty if i cancelled the policy after three months she assured me that would not happen. also i had insured this truck the previous year with the same broker using eagle star but they informed me that eagle star wanted to increase premium to renew the policy even though value of truck had decreased and my driving record had not changed.it is obvious that they  were directing  new business to setanta for whatever reason. are insurance companies regulated in ireland ?


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## ailbhe (21 Feb 2008)

Chum, rates change. Where one is competitive one year they may not be the next year. Setanta are the cheapest at the moment as they are trying to break into the market. That may all change next year which is where your broker should recommend another, more competitive company.
I work in a brokers and can assure you that Setanta are the cheapest for commercial motor at the moment, hands down. We are not pushing people towards Setanta, it's just that the majority of other insurers cannot match their prices and brokers are obliged to quote the most competitive price. It is the customers choice whether to change company and pay less or stay with their existing insurer and pay more.

As for why your broker told you that Setanta would not charge short term rates, well that was the brokers fault and not the insurance company. The broker should have called and checked that out as I can assure you, charging short term rates for a policy cancelled in the first year is common practice. Time for a new broker maybe?

And BTW the insurance sector is regulated to within an inch of its life! If your broker misinformed you there are routes you can go down in order to complain.


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## chum (22 Feb 2008)

is setanta paying higher commissons to brokers in order to attract business?


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## ailbhe (22 Feb 2008)

Slightly but the premium is way lower so much of a muchness. If you think a broker would prefer to get 20% of €320 than 15% of €700 then you're mistaken! Again, BY LAW, the broker has to quote the most competitive premium. If that is Setanta (which it seems to be most of the time as they are so cheap) then we have to quote it if they provide equal cover. 
We can't win it would seem. Would you prefer your broker had sent out your Eagle Star renewal at the higher premium and not mentioned a better quote was available? If so then I suggest you don't use a broker. Just renew direct with a company and continue to renew every year without shopping around.


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## chum (22 Feb 2008)

it would have worked out cheaper for me if i had paid the higher premium to eagle star as i would have been in the second year of the policy and therefore the penalty charged for cancelling the policy would have been much less than what setanta charged,as i have said before the broker knew my situation and quite obviously did not for whatever reasons act in my best interests. maybe thats why the industry is regulated as you say within an inch of its life!


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## ailbhe (22 Feb 2008)

You're right chum and you should complain. My point is though that your gripe is with the broker and not setanta and that was what the OP was asking about


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## DecTrader (22 Feb 2008)

I have just given Setanta our business for two reasons - 

Firstly our broker says that they have put loads of business to Setanta and have had no complaints. She said that they are very competitive, but it's because (a) they are trying to break into the market, (b) they deal only with brokers, and (c) they have invested heavily in web based quote systems taht reduces their overhead  relative to other insurance companies. Our broker told us that Setanta are good to deal with and any claims that they have had have been settled promptly. (We have been using the same broker for years so I trust them...)

The second reason we went with Setanta was because they were almost 50% cheaper than FBD for the same cover. (Our broker told me she didn't ring any other companies because she knew that no-one would beat Setanta.....being doubting Thomas that I am and knowing that FBD don't use brokers I rang them for a quote!)

So there you have it....our insurance disc arrived to-day....


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## chum (22 Feb 2008)

dectrader you glowing praise of setanta gives rise to the obvious question what connection if any do you have with setanta ?


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## chum (22 Feb 2008)

ailbhe,you fail to see the obvious conflict of interest that exists with setanta offering higher commissions to brokers. is it possible that brokers shall not act in the best interest of there clients when it is obvious that the can make more money by selling setanta policies.i am not saying all brokers shall operate like this but it is clear that is what happened to me.


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## DecTrader (22 Feb 2008)

Chum - I have no connection with them whatever - I had never even heard of them until last Wednesday.

As for the glowing praise you refer to - I simply took the time to let you know what my broker said about them and to let you know my experience with their prices relative to FBD. I naively thought that someone mind find the info either interesting or useful......


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## ailbhe (22 Feb 2008)

Chum you just seem to be very mistrusting. As I said above, yes, commission is slightly higher but overall the commission to be made from Setanta policies is far less than that made from other companies due to their lower premium. I had a policy yesterday which was €1200 with Hibernian on a 7.5% commission rate = 90 euro. Priced it with Setanta who came in at €320 (as they do not load for named drivers and this person had two provisional licence holders as named drivers) so commission was @ 20% = 64 euro. A loss of 26 euro commission. 
As I've stated on numerous occassions a broker is obliged BY LAW to requote all renewals with all the companies they use and quote the client the cheapest once cover is the same. We cannot "push" a policy on a client. In fact if we can at all we try to keep a person with their original insurer as it means less work for us and more sway with the company if the client needs to do something not normally allowed (e.g. X has been with you for 5 years, would you not let him put his 17 year old on for a day or two etc).
Of course if the quote we get from an alternative company is much better we will quote it. It is our best interest to do it too as the client will just ring another broker and get that quote so why would we want to lose business.


I won't continue to repeat myself as I feel I am talking to a brick wall in relation to the ins and outs of rebrokering.


DecTrader, glad to hear you got a reduced premium. As I said above we have not had any claims as of yet through Setanta so also glad to hear that they are resolved quickly.


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## chum (22 Feb 2008)

ailbhe, not able for the criticism, maybe you could donate your time to help daveys get rid of the financial services ombudsman.


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## ailbhe (22 Feb 2008)

Chum I have done nothing but try to explain the way a brokers works and as someone who works in a brokers I am in a better position than you to do this. 
I agree your broker was in error and have said on numerous occassions you should complain. You have nothing constructive to say except conspiracy theories and I for one am tired of listening to them. I am well able for criticism and am aware there are corrupt brokers out there. If you feel your broker is one then do something constructive and make a complaint but stop tarring us all with the same brush.
I totally agree with the need for regulation and have suggested you use it, hardly the actions of someone trying to " get rid of the financial services ombudsman".

As a matter of interest did you make a complaint about your broker?


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## chum (22 Feb 2008)

yes i did, joe is on the job as we speak.


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## ailbhe (22 Feb 2008)

Glad to hear it.


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## jb04 (20 Mar 2008)

They are very competitive.


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## johndoe64 (20 Mar 2008)

I had my policy with ES and changed to Setanta this year and my policy halved in price so they are comeptitive, hopefully I won't have any claims so won't have to find out if there are any pitfalls.


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