Lloyd’s Survey Confirms Small Business Confidence in Brokers

January 5, 2006

A survey, commissioned by the General Insurance Market Association (GIMRA), which queried 500 small and medium-sized businesses (SME’s), has determined that they continue to have confidence in traditional insurance brokers.

The report, on the Lloyd’s Website (www.lloyd’s.com) noted that 57 percent of the respondents cited the “time-saving benefits, while just under two thirds could not identify a disadvantage in using a broker,” as significant reasons for their confidence. “More than 60 percent of SME’s said they were ‘very satisfied’ with their broker, compared with only 37 percent who were satisfied with their direct insurer,” said the bulletin. “Accordingly, 77 percent of respondents recognized a future need to use a broker.”

GIMRA chairman Carl Wong stated: “These results belie the industry forecasts of the past few years warning of the demise of the broker as telephone and Internet sales increased. They represent a resounding endorsement of the quality of broking available in the UK insurance market.”

Lloyd’s also noted: “The survey found that SME’s also recognize the need for effective risk management and have a positive attitude towards improving it. Over 80 percent said they saw risk management advice as useful, and 57 percent now receive, or are interested in receiving, risk management advice from brokers. This is up from 46 percent in 2001.”

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