ABSTRACT
Disputes between companies quickly became personalised in the heated atmosphere of the post-war insurance markets, especially where the individuals involved were strong-willed characters. Competition in the post-war decade took the form of price cutting, product innovation – hitherto a rare phenomenon in fire insurance – and more aggressive marketing. The reversionary bonus was loathed by the non-bonus paying offices who tended to regard the ‘with-profits’ policy – the first new product in fire insurance since the early eighteenth century – as financially unsound and a betrayal of shareholders’ interests. Rate cutting was to be achieved by cross-subsidising domestic underwriting from profits on foreign insurances, a tactic which suited the Phoenix with its huge overseas income. As well as underwriting results and the structure of the insurances, purchasers were also interested in expense ratios and net profits, in staff salaries, agency commissions and pensions.
