A report recently published by the Chartered Insurance Institute (CII) revealed that professional brokers are outperforming price comparison sites, banks, building societies, and insurers alike when it comes to building consumer loyalty and confidence. The report is especially relevant in light of recent research from Which? showcasing that trust in the insurance industry has plummeted to record lows.
The Which? study also revealed confidence in insurers plunged to -24, its lowest level since August 2020 and that only 21% of consumers trust insurance companies, while 44% expressed active distrust. Meanwhile, the CII’s research underscored the importance of interactive advice to consumer understanding of insurance and how broker-assisted consumers report better experiences regarding claims speed.
Shining a light on that great power of expertise and advice in insurance broking, John Dunn (pictured top left), managing director of Brokerbility noted that a professional, informed, independent broker is an essential partner to any individual or business in supporting them to find the right insurance solution for their circumstances.
“Regardless of the cover sought,” he said, “a broker will be there to consider the best approach and range of markets to engage to obtain the best outcome for the customer based on their key drivers - whether that be cover, claims service, risk management or price, or alternatively the best blend of what is available.”
Adding his insights, Jamil Elbahou (pictured top right), CEO of the Connect Group and chairman of GBN Risk Solutions highlighted that great insurance advice comes down to the quality of the individual employed by the broking firm. At the end of the day, it all comes down to the diligence that the broker applies to their clients.
“We are always in favour of entrepreneurship and the emergence of more options for the client, but we don’t believe that the independent or non-independent operational model has anything to do with this,” he said. “We know this because we work with brokers both large and small and it always comes down to the individual in question.”
Speaking on independent advice in broking Elbahou said that over the course of his time in the market, he has seen that the term ‘independence’ often confused with the term ‘focused’. When a firm is smaller and more focused on its core expertise, a lot of the time it tends to deliver more value than a larger organisation with numerous specialisms.
“This is where the focus should be and not on the label of ‘independence’,” he said. “I have seen valid growth first-hand over the years of firms which are smaller, privately owned and specialist delivering real value to their clients. Many that seek to service clients abroad, grow internationally and maintain their independence have benefitted from being members of a network, which enable brokers to do just that.”
A key factor behind this shift is ‘market churn’, he said. As organisations get larger, it is natural that some of the talented individuals will leave and start up smaller, new firms. That is one of the defining features of an evolving market.
Dunn also highlighted the natural fluctuations of the insurance ecosystem, noting that over an extended period of time there is often noise about whether the role of a broker is ebbing or flowing. “However in my experience,” he said, “where a customer has found a trusted partner broker they will continue to seek the support and advice of that adviser as their insurance needs develop and change.
“That said factors that will influence broader engagement with an independent broker include economic environment, changes in legislation, large scale events that highlight issues e.g. cladding.”
Looking forward to what the future holds for the insurance broking marketplace Elbahou said his team is confident that there is room for everyone in the market as client’s needs are always evolving.
Dunn also underscored his confidence, particularly in the future for independent brokers, highlighting that: “Where a customer understands the value that an independent broker brings to a situation they are always likely to seek out that trusted partner.
“With that in mind, I believe there continue to be growth opportunities within our marketplace for those who can form great relationships and bring their expertise to the benefit of their customers.”
