45% of brokers see positive impact on reputation, according to survey
Recent severe flooding that caused a crisis in parts of the North and the South West of England will have a positive effect on the reputation of the UK insurance industry. This is the belief of almost half of all brokers surveyed by broker-only insurer NIG.
The study, carried out in late July, found that 45% of brokers felt that the insurance industry’s handling of flooding would have a positive impact on the its reputation while 28% thought the industry’s handling of the aftermath would worsen its reputation. A further 22% predicted no change.
In terms of pricing, an overwhelming 72% of brokers said that the poor weather would make it easier for them to sell in premium increases both later this year and next.
When asked about the efficient management of the resultant claims, 59% said that they felt that it was either ‘critical’ or ‘very important’ that an insurer had a local presence.
Responding to the results, Mike Crane, NIG’s head of SME sales and servicing said: “Ultimately, insurance is all about claims, and the aftermath of this unprecedented flooding will provide our industry with the biggest opportunity to show its true worth for a number of years.
“While it’s heartening that so many brokers believe the industry will handle this well, the fact that over a quarter predict a negative reaction from the public and business is a cause of concern. At NIG, we have worked very hard to provide the fastest response and best possible service to our customers.
“Local presence and the knowledge it provides, as brokers highlighted, are a key factor in accelerating the speed with which we can process the claims. The fact that we have local staff on the ground in these flood-hit regions is a major advantage.”
The survey of 184 brokers was conducted over the period 13-26 July 2007 throughout the UK.
