Defaqto research shows brokers not going the way of the dodo
For years it looked like the days of personal lines brokers were numbered because of an increase in direct insurers and, more recently, the arrival of price comparison sites.
But it seems the foe is becoming friend as research from Defaqto reveals that brokers are increasingly using aggregators to their advantage. According to Defaqto, brokers with online capabilities have been providing car insurance quotations on aggregator sites since October 2007.
Added to this is last month’s arrival of Quotes2Me, an online insurance portal for consumers and SMEs. The service, which is available to all intermediaries, gives brokers a more affordable alternative to having their own internet presence. The site allows brokers to provide online quotes to customers.
Meanwhile, brokers, who have long dominated the commercial lines market, are facing increased pressure. With growing interest from direct writers and bancassurers, and slogans by these providers such as “cutting out the middleman,” there is no doubt brokers will have to relinquish some control of the SME market, according to Defaqto.
But the broker is still king in the medium to larger sector of the commercial market due to the need for unique insurance requirements that may not be provided by direct insurers.
So while brokers face a tougher climate on the commercial side, their persistence in that sector coupled with tenacity in personal lines should ensure their survival for years to come.
