The broker market in the insurance industry is in a state of upheaval. Consolidation continues to take place in times of higher growth rates. Competition for insurers is increasing because the number of brokers is falling, but the providers are becoming larger. As a result, individual brokers will have a better negotiating position in future.
In the white paper "Strategic requirements of insurance brokers", we analyse which details insurance companies should focus on in order to ensure and successively increase their own attractiveness.
One thing is clear: brokers are an elementary sales channel for insurers alongside exclusive and bank sales, as they offer high-quality advice and can therefore gain the trust of customers. This makes it all the more important to find out what brokers say is essential for cooperation with insurers. In our study, we interviewed industry experts and brokers directly and used the results to identify the areas in which insurers can make adjustments.
Knut Besold
Partner, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Key findings in a compact overview
- The number of brokers is falling, but the broker market will continue to be a growth market for the premium volume of insurance companies in the future.
- Highly relevant success factors for broker loyalty include the digital connection for pricing, quotations and applications (TAA) as well as the digital transmission of customer and billing documents and their data.
- 33 per cent of brokers and experts believe that broker portals will still be relevant in five years' time.
- The user-friendly design of the functions in broker portals is essential – especially with regard to access to customer, claims and contract data.
Optimised alignment of insurers
According to our analysis, insurers can base their future strategy on five cooperation dimensions: Brokers require a fair price-performance ratio, what they consider to be an appropriate or above-average commission as well as smooth IT processes, a renowned brand identity, sales promotion strategies and experienced broker advisors on the insurer's side. In view of these broker requirements, it is advisable for companies to make investments at an early stage in order to increase their competitiveness and thus strengthen their position on the market.