Will they, won't they? Can they, can't they?

Is there a future for independent intermediary trading in Personal Lines Insurance?

With the continued development of Networks, large and growing personal lines specialists, Direct writers and the customers' seemingly insatiable desire for the internet, there appears to be a growing feeling that the future of the traditional high street local broker is under threat.

Despite the competition is there a future? Can an independent intermediary still develop a profitable and sustainable personal lines business on the high streets of UK towns and cities? There seems to be negative media coverage galore for this sector of the market.

But what is it that independently operated Personal Lines Brokers offered in the past that endeared them to customers and ensured that insurers considered them to be a key distribution channel to guarantee their own profits and growth?

Quality personalised service, a specialist knowledge, a local presence, an ability to know their customers and understand their needs, a face to face service, a wide and flexible product offering, consistency of approach and reliability? So what has changed?

In reality nothing! All those important traditional values and characteristics still remain today and to a large degree they have to; perhaps even more so now in order to differentiate their products and services from other market sectors.

It is accepted that there are some who have sold their business or networked as the impact of regulation on the industry and stiff competition has put a squeeze on profits. But of the very large numbers who remain independent and have survived the heavyweight changes that the regulated environment has brought, they remain strong and committed to providing those same quality services.

But - and there is always a but – both the market and customer purchasing preferences have changed. Some customers prefer the phone - quote and buy, quick and easy. Experience also tells us that growing numbers prefer to use the internet - click and buy; equally straightforward for the customer. In addition to such preferences, the acquisitive big personal lines players continue to grow larger and more powerful by the minute - increasing demand.

Large numbers of intermediaries who have and will remain independent still deliver the same values to a large group of loyal, and in many cases, growing band of customers who continue to be satisfied by local specialist experience and quality service. The personal touch is still a strong seller. But are those customers in large enough numbers to guarantee a robust business with a vibrant future where long-term viability is guaranteed and the return for the hard working business principals provides a healthy living?

Allianz Cornhill Personal's research and recent activity suggests this to be the case. Some customers have tried and tested the alternatives and return to sample again the personal touch closer to home. We have responded accordingly and appointed over 250 new agents in the past 18 months.

Results confirm the independents are still alive and kicking.