Eric Galbraith's blog returns to Insurancetimes.co.uk.
It has been a while since my last blog. No, I haven’t been away on an extended holiday somewhere hot, just pre-occupied by market events some of which I consider to be unnecessary, time wasting, expensive and factious.
But let’s get back to the business in hand. It seems to me that in the current economic environment, which is likely to be with us for quite some time to come, we will experience a renewed appreciation of values. We will see a greater appreciation of the simpler things in life, for example shelter, heat, food and light, all of which are growing ever more expensive in relation to incomes. These commodities will also be deserving of (and receive) a greater degree of respect i.e. there will be more efforts to avoid waste with emphasis placed on recycling, reducing consumption and conservation of resources.
Eating out when I was younger was a treat with the restaurant diligently researched before hand and the meal paid for in cash. Central heating was a luxury and food wastage abhorrent. I remember my first mortgage – it needed input from my employer, a face-to-face visit with the building society and a wait of what might have been two months before we could access the funds. Prudence and affordability were watchwords. Getting a mortgage then was a major achievement; today that rare breed of consumer, the property purchaser, will no doubt empathise with that feeling.
“When times are tough people look for greater value for money and will happily buy when they believe they are receiving it
Eric Galbraith
When times are tough people look for greater value for money and will happily buy when they believe they are receiving it, think of M&S and its £10 meal deal for two or the growth in sales of ‘gently used’ clothing the new euphemism for charity shop purchases. People also want to see quality; that what they spend their hard earned cash on is actually worth the outlay.
I believe that brokers will gain ground in these challenging times by providing that value through offering sound and trusted advice to their customers. They can explain the dangers to their customers of reducing their levels of risk management or insurance cover and help them find quality cover that is right for them.
That was why I was so pleased to see Dan Waters, the FSA’s director of retail policy and conduct risk, comments this week at the conclusion of the regulator’s insurance comparison site review where he urged people to compare what is covered by a policy, to ensure that it meets their requirements, and not just focus on the price. This is something that BIBA has been saying for a long time and will continue to do so.
“I believe that brokers will gain ground in these challenging times by providing that value through offering sound and trusted advice to their customers.
Eric Galbraith
That’s enough of my nostalgia. I don’t want to return to what some might regard as the ‘good old days’. We must set today’s standards even higher than they were in the past by addressing ethics, professionalism and qualifications from within our sector. That, the insurance industry must do itself and not rely on the regulator to do it for us.
Eric Galbraith is chief executive of the British Insurance Brokers Association (BIBA).
