Only 14% of brokers expect growth from general insurance — survey
If numbers from new research by Premium Credit are anything to go by, it looks like insurance brokers aren’t too keen on growth prospects when it comes to general insurance.
According to a recent PollRight survey conducted on behalf of the premium finance firm, only 14% of brokers expect to grow their general insurance business over the next three years. This is a stark contrast to cyber, from which 72% of brokers anticipate growth.
Commercial insurance came in second, with 58% of respondents saying they believe growth will come from this space. More than a quarter (26%) placed their bets on health insurance and critical illness.
Meanwhile 46% of brokers expect their clients to make greater use of premium finance over the next three years.
The study also found that 86% think confidence levels within the broking community are relatively strong. In fact, 24% of brokers said they are ‘very confident’.
However, the findings also pointed to a projected hit when it comes to the sector’s size. According to Premium Credit, 90% expect a reduction in the number of intermediaries over the next year. In addition, 16% forecast a steep fall.
Drivers include growing competition from insurtech, customers increasingly opting to take the direct route, and high stress levels.
“Brokers who know their clients have nothing to fear
The Society of Insurance Broking (SIB) has quizzed brokers about their thoughts on the future of insurance as well as the importance of trust, and here we give you the lowdown on the findings.
Conducted among 341 insurancebrokers, the survey found that 51% are worried about the future of their business. It’s not clear what all the drivers are for the concern, but 94% agreed that knowing your customer is more important than ever at a time of uncertainty in the market.
In addition, 99% said it is important that customers know they can trust their brokers while 88% are of the view that having a good trust-based relationship with clients is crucial amid market uncertainty. Also, the majority of the respondents believe high levels of professional conduct and professional qualifications are instrumental in gaining trust.
Meanwhile a good percentage of the polled brokers are making sure they keep up with the times, with three fourths saying they are investing in themselves amid developments in products and technology.
“From this research it is clear how much emphasis the broking profession places on the human element in the insurance process,” said SIB non-executive director Liz Foster. “Insurance is fundamentally about people, and trust is a significant factor for society’s engagement with the insurance sector.
“Although brokers are realistic about the need to embrace new technologies, it is still essential for them to know their clients and be able to assist them in making important decisions about the insurance products that meet their individual needs. Brokers who know their clients have nothing to fear.”