CII report says cost-cutting and restructuring to blame

Insurers and brokers could save up to £80m if they eradicate duplication in the mid-corporate marketplace, a new report reveals.

The report, published by the CII, also says cost-cutting and restructuring have lowered levels customer service in the mid-corporate marketplace.

And it stresses that not enough attention has been paid to servicing mid-corporate customers, meaning their level of service is bundled up with SME or large corporate sectors.

Ernst and Young carried out the research between December last year and January this year, interviewing 16 brokers and 8 insurance companies.

The report recommends:

* Far better segmentation for both brokers and insurers to align their business with the customer

* A bespoke mid-corporate operating model that gives the required access and service that will negate the need for multiple routes to insurers

* Brokers to utilise correct channels offered by insurers who invest in the mid-corporate sector

Stuart Randall, chief executive of Brokerbility, discussing the report at a breakfast meeting before today's Biba conference in Manchester, said insurers were not helping by constantly breaking relationships with brokers.

Randall said: "We build those relationships but are constantly having to rebuild them. At what time do they [insurers] realise it is a people business?"

Barry Smith, chief executive of Fortis, said there was so much competition from insurers in the mid-corporate sector that there was plenty of good choice for brokers.

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