RSA could axe more underperforming brokers

RSA will not shy from exiting further underperforming broker relationships, says UK and western Europe chief executive Adrian Brown.

Speaking to Insurance Times following the release of RSA’s first-half 2012 results, Brown said: “We will continue to look at our bottom-performing brokers and if we don’t believe that we can turn around the portfolio or we don’t believe they really want a trading relationship with RSA then we will be prepared to walk away.”

RSA made the headlines in February when it announced it was exiting relationships with 200 of its worst-performing brokers.

Brown said: “There is no plan tomorrow to announce another 200 [cuts] but we look at the bottom-performing 200 on an ongoing basis.”

While the company continues to monitor its worst-performing brokers, Brown said the company is focusing far more of its time on developing relationships with its top 250 brokers, who bring RSA more than 90% of its broker-sourced premium.

“We have got some exciting things in the pipeline for our top 250 brokers,” Brown said. “We are looking at how we trade with them – the service proposition particularly.

“We have got a couple of pilots on the go at the moment which are showing some really encouraging results.”

RSA’s UK business broke even in the first half of 2012 as a £14m underwriting loss in commercial lines cancelled out a £14m underwriting profit in commercial lines.

Brown vowed to continue striving for improvements in UK commercial lines. “There is no hiding from the fact that profitability in commercial business across the UK is not where it needs to be,” he said. “We will continue to take tough action on rate and risk selection to return that book to profit.”