Is the Insurance Broker Broken?

Very rarely now does the customer deal with a third party

The internet started the revolution of connecting people with products and that was bought alive by the trading platforms such as eBay and Amazon which facilitate the direct relationship between consumer and seller.

We now even have websites that allow the designers of products to sell their wares online through specially designed sites that allow them to be the manufacturer, the wholesaler, the retailer and the distributer. This is not the case across all sectors however, as within the commercial insurance industry this revolution has not yet occurred, in fact it hasn't even really seen much evolution either.

As yet, time has almost stood still in the way we buy commercial insurance and interact with insurers. The customer journey still utilises a Broker or a third party intermediary. These channels are still the access point for most SME's and not direct.  Every now and again the industry is challenged with disruptive innovation like Direct Line but ultimately it is one industry that hasn't embraced change in the direct channel approach.  Is this right?  Should we in fact start to educate our SME’s to understand more about the commercial insurance market and as a result enable the way they buy insurance to develop beyond the current offering?

Do small businesses want to buy through Brokers, intermediaries or direct, and are they in fact reliant on third party advice on what and how to insure?  Steve White the CEO of Biba recently told me that although under insurance is a concern, a much more significant worry is not insuring adequately or correctly.  Recent flooding closed a walk way that stopped shops from opening but very few shops had the correct insurance in place for such an eventuality, for a small business lost days in trading can be catastrophic and change the future value and potential direction of that company.

The question "is the Insurance Broker Broken?" can be a dangerous one to ask, as the alternatives can be risky and very less rewarding for those who seek solace and reassurance from the one person they rely on to see their insurance needs met.  But how long will this last - if SME’s are in fact cash poor will they start to look for a more cost effective way of purchasing insurance?  Is something innovative about the enter the market that makes us question the current status-quo or are SME's in fact more time poor than they are cash poor that the value of a trusted broker or intermediary is in fact invaluable?

Well ........ Let the debate begin, one piece of research, now live, will answer all these questions. One survey for businesses, one for insurers, brokers and intermediaries and in May 2016 a set of insightful, cutting edge, industry leading market research will be announced. You now have the unique opportunity to contribute to this research, to allow us to see the shape of the future, not just from those in the know within the industry but straight from the customer’s mouth, uncensored, unadulterated, honest insight...... Make sure you have your say. Now.

Headline results will be launched live at Biba. To ensure the best value for money make sure you have Pre-ordered your copy of the Full report which will be available at a very special discounted rate if confirmed before Biba. Biba discount for attendees post event will be honoured.

Take the survey now and let's start the revolution!