We’ve all heard the whispers that comparison sites have all but eaten brokers’ business when it comes to personal lines – but the reality is quite different, according to
Broker Network.
Not only are personal lines not dead for brokers, but the national network’s membership base is showing an active interest in them, says
Tim Rolfe, chief product and underwriting officer.
“It’s very easy to assume that brokers don’t do personal lines, but 30% of our members’ business is personal lines, and some of our members are 100% personal lines focused,” Rolfe told
Insurance Business.
A key priority for Broker Network next year is making sure that its members have access to competitive products in the personal lines space: “we have heard in no uncertain terms from our membership that they want us to focus on delivering these things for them,” Rolfe explained.
According to Rolfe, while aggregators have had an undeniable effect on the personal lines market in the UK, brokers are regaining ground.
“There are always significant swings and changes in distribution, and then there will be a correction in that. I think that correction has been happening over the last three or four years in personal lines,” he said.
Aggregators may well have stolen the limelight when they first came on to the scene, but there has been something of a pendulum swing since, particularly for a certain type of consumer.
“In reality, comparison sites boil down to spending several hours on a Sunday afternoon filling in various different websites with tons and tons of information, to then get a quote back from somebody you might never have heard of,” commented Rolfe.
For some customers, the lure of a potential saving in their ultimate premium cost means it is worth that time and effort – but, crucially, one size does not fit all, according to the product and underwriting officer.
“There are lots of other customers that would say: I’ve got better things to do with my Sunday afternoon, I’m going to go to a broker. It might cost a little bit more, but I know that they’re doing that work for me, and I know I’ve got somebody I can talk to if I have an issue with my insurance going forward,” he explained.
For those less driven by price and more by the value of their time and the service provided – and particularly those who do not have off-the-shelf insurance needs – the broker remains king.
“I think the tide went across to the comparison sites, but some of it has come back again since,” Rolfe concluded.
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