The Client-Broker relationship, how often do you speak to your clients?

June 27, 2017
InsurTech

Over this series we are looking at what changes you can make to secure and strengthen broking for businesses over the next 10 years. Recent interviews conducted by PFK Littlejohn and Konsileo throw to light some stark information that has the potential to change the business of broking entirely. Through this series of posts we are looking at how the client-broker relationship can be modified to reflect this.

From the research conducted by PFK Littlejohn and Konsileo, it was discovered that broker’s often miss the opportunity to turn a relationship from a ‘Transaction enabler’ to a ‘Risk advisory’ one- something that has the potential to become increasingly costly. Furthermore, over half of clients surveyed said they would be:

‘Willing to spend more time with their broker to discuss elements of their business and the risks it faces.’

This creates an opportunity within the industry, but it needs to be seized. Commercial insurance brokers have reported that they spend almost as much time on administration as they do with clients. Through the rise of InsurTech, relationship-based interactions have the potential to thrive whilst administration and transactional responsibilities would be essentially, completed by ‘robots’; streamlining the overall process, translating to a higher revenue.

How can this improved interaction and relationship translate in business prospects? Most businesses deal with a specific broker or a smaller team and are likely to be loyal - yet they have limited contact, on average they speak once or twice a year. Many businesses stay with their current broker out of convenience, loyalty and satisfaction, however there is a wide variation in loyalty between the individual broker and the broking firm. In fact, half of clients interviewed would:

'Happily move to a different provider should their individual broker leave'. 

An enhanced interaction between broker and client could not only improve relationships, transferring to more revenue, but could also improve business prospects for your firm over all.

 Keep your eye out next week as we conclude this series on the Client- Broker relationship and further delve into what changes you can make to secure and strengthen broking for businesses in the future.

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