Brokers come into their own as GI market hardens
Written on August 2, 2010 – 9:28 am | by Hunter Rankine
1 Answer Network is urging consumers to put their faith in local brokers to find the best insurance deals, as a hardening general insurance market sees higher premiums and reduced benefits.
Insurers now need greater capital adequacy but are facing lower investment returns and a high incidence of claims, in some areas of the market.
The Network is therefore predicting that premiums will rise, benefits will be reduced, excesses raised and extras in insurance packages thinned out.
The firm’s managing director, Paul Muir, comments: “At the moment consumers are not fully seeing those rises as the market is highly competitive and it is absorbing some of the uplift, but with margins being squeezed ever tighter that cannot go on for much longer.”
He adds: “People are going to find it tougher to just log on to a comparison website and get the right insurance for their needs.”
Mr Muir also expects insurers to focus on offering basic policies, in which case a broker can help with placing non-standard and specialist risks.
The managing director has recently been encouraging brokers to adopt a more pro-active approach with customers, such as enhancing an online presence with a quote generator.
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