Lack of personalised service biggest gripe for scheme brokers

A lack of personalised service from insurers was the biggest frustration for brokers working in schemes, a survey released today has revealed.

Insurer MMA’s second survey, of 250 UK commercial brokers between mid May and early June this year found that 29.8% cited a slow or lack of response to queries as their number one gripe, 29.8% said a lack of underwriting flexibility, and 26.7% a lack of access to decision makers.

Only 4% used social media for marketing, with 31% using both cold calling and trade fairs, and 41% using both hard copy flyers and e-mail marketing.

The study reported that more than half of brokers surveyed manage at least one scheme, reflecting continuing growth in the number of commercial brokers undertaking schemes work and the high level of schemes placement. 

This is in line with MMA which has boosted its commercial schemes premium growth by 25% in the first half of 2012 compared with the same period of last year.

Forty percent of brokers said they would look across the whole market or use a competitive tender process when looking for a partner for a new scheme, while MMA has experienced a 20% increase in new enquiries this year. Less than two-thirds of brokers would expect to directly approach insurers whom they had an existing relationship with.  

MMA’s schemes manager Chris Withers said: “For such a growth area for commercial brokers, and as such for insurers, I was surprised to see that the key areas of frustration are the most straightforward, the need to offer a personalised skilled service. This suggests a growing complacency from the established insurers which presents opportunities for insurers such as MMA where we are already working with brokers to provide a highly skilled and more personalised service.

“We were not surprised by the number of brokers going out to tender with new scheme ideas; this suggests a mobility in the market when it comes to placing schemes. Brokers are loyal but their loyalty has not been rewarded and with the growing complacency in service provision from insurers they are voting with their feet. The ongoing service is more crucial than price. 

“Due to the success of traditional marketing methods in the schemes market it is clear that insurers should be working more in partnership with brokers. The broker brings the technical knowledge and specialism within the sector and the insurer carries the risk and brings the service and perhaps marketing consultancy to help make the schemes successful for all parties involved.

“The growth shown in the research agrees with what we are seeing in MMA, continuing growth in brokers undertaking schemes business. As a growing market insurers should be upping their game, offering a more dedicated service and offering brokers the support they need to make their schemes a success. At MMA we have a dedicated schemes team that work with brokers not only to develop new schemes but to ensure the schemes continue to grow and increase in profitability.”