At a glance
- There has been much speculation on what the future holds for Personal Lines motor brokers
Ian McManus, Head of UK Regional Broker speculates on what the future looks like for Personal Lines brokers, particularly those focused on motor.
The demise of the channel has been heralded for several decades and there have certainly been some tough times. In the distant past it was the advent of the direct writer, regulation, the Internet and more recently the rise of the aggregators. There will inevitably be more change, particularly with recent advances in technology, such as telematics and social media to whatever follows.
Although some PL brokers have fallen by the wayside over the years, many others have adapted and risen to the challenge and continue to thrive. PL brokers compete across the market going head-to-head with the direct writers at one end of the spectrum, through to more traditional models providing advice and face-to-face service up and down the country. Others have moved away from standard risks to provide access for customers who aren’t catered for by the market as a whole. This diversity should make the broker channel an exciting and attractive place for insurers to distribute their products.
Technology has already had a marked impact in many areas of the PL motor market, and this trend will continue. What reassures me about the future is the number of approaches I’ve had from brokers seeking to take advantage of these opportunities, and wanting to work with insurers, to our mutual advantage.
However, the PL motor market is highly competitive and while it is possible to justify a little extra for the professional service delivered by brokers, Zurich’s end customers are very focused on price. Our significant financial investment demonstrates Zurich’s long-term commitment to the broker channel.