R&M Reports UK Personal Lines Brokers Losing Business

Dublin-based analysts Research and Markets has added “The Future Role Of Brokers In UK Personal General Insurance 2007” to their offering.

“Insurance brokers have lost market share in UK personal lines insurance, as new distributors have won influence over the market,” said R&M’s bulletin. “This report analyzes the current situation and future prospects for personal lines brokers, evaluating strategies for survival and providing unique estimates and forecasts of personal lines distribution in the UK.”

The study is based on the results of R&M’s survey “of personal lines brokers on issues such as the threat from other distributors and FSA regulation Forecast of the market share of the broker channel up to 2010, based on our model and interviews with industry executives,” the announcement explained.

Among the report’s highlights, R&M said that “according to our Personal Insurance Broker Survey carried out in Q3 2006, brokers consider direct insurers as the biggest threat to their share of personal general insurance, reflecting the fact that this channel has overtaken brokers to become the largest distribution channel in motor and the second largest in household insurance.

“Aggregators offer brokers the option of generating Internet sales without also having to build up strong call center or consumer brand awareness. Instead such brokers can focus simply on winning a share of customers who choose to buy online via aggregators.

“Small high street brokers are expected to continue to lose market share in the next five years, as a result of consumers moving away from buying via the face-to-face platform. In contrast large brokers are expected to do better, as a result of the new distribution strategies adopted by such brokers.”

For more information go to: http://www.researchandmarkets.com/reports/c65144; or contact: Laura Wood, Senior Manager, Research and Markets e-mail: press@researchandmarkets.com Fax: +353 1 4100 980.

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