Brokers must focus on claims to grow market share
Published: December 28, 2017
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
An industry expert says brokers need to put a focus on claims when building their market. William Legge, general manager of the UAC, says high net worth clients almost always buy through a broker, but other demographics do not always.
To make sure market position is strong in other areas, brokers should build up claims expertise. UAC’s latest CEO survey shows that 45% of underwriting senior executives think the broker role need to change. Legge says he thinks this shows many respondents want to see brokers work more on claims.
“You need to change your focus from getting business, to, as we are doing, looking at retaining what you’ve got and growing it and being of more value where the value needs to be,” Legge told Insurance Business. “We think buying insurance is not such a big deal for an SME but it is when they have a problem – that’s when they need the expertise.
“We think that’s where a broking house should be saying ‘don’t you worry, leave it to us’.”
He says brokers have good relationships with underwriting agency partners as both have been through tough market conditions. Legge notes the agencies with a strong broker relationship will reap the rewards during an inevitable market change.
“For the next 30, 36 months I think it will be an extraordinarily rewarding time for those agencies who have really put in the relationship work,” Legge continued. While brokers are focusing on claims, underwriting agencies should make themselves more open and easier to deal with.
“That allows the maximum working flexibility to the market facing team. It also provides the data they need to be more practically useful and in doing it automatically rather than having to work it out on spreadsheets,” Legge continued. “To do that, they have to make absolutely sure that their market facing people have the time and also the skill sets, meaning data, which all comes back to the operational systems.”