COMMITMENT TO THE BROKER DISTRIBUTION CHANNEL
Carrier performance 7.13
FIVE-STAR CARRIERS
What brokers want
The growing trend of carriers taking their business direct to consumers has been a looming concern for many brokers. Compared to 2017, it seems brokers are noticing more activities from their carriers in the direct-to-consumer arena. Just 10 carriers earned a five-star ranking for their commitment to the broker channel – two fewer than last year – and the average score fell 0.5 points, the most significant drop this year.
“[They use] the same brand for direct and broker business – not a big issue for me, but it has other brokers upset,” wrote one broker, who was clearly in the minority, as the majority of feedback signalled growing distrust in brokers’ partnership with carriers.
“Don’t like the direct writer direction they have” and “drop the direct arm of the company” were among the responses from dissatisfied brokers; others elaborated further on why they gave their carriers poor marks in this category. “They continue to say they support the broker, but then they allow their direct subsidiaries to get away with stuff the broker cannot,” said one angry broker, who added: “Hard to promise commitment to the broker channel when they have a direct market that is less expensive.”
But there is a silver lining. While there’s no doubt that most brokers are frustrated with their carriers’ direct business, some carriers are clearly committed to their broker partners: “Probably the top insurer when it comes to being committed to the broker channel” and “strong supporters” were two of the very few positive responses.
