Survey Results on Underwriting Agencies now Available
While the contraction of insurers continues, there is a rise in the number of Underwriting Agencies. LMI assisted Gratex International, winner of the Innovation Award at this year’s ANZIIF Insurance Industry Awards, to survey general insurance brokers on the relevance and performance of Underwriting Agencies in Australia.
The Key Insights from this survey were:
1. Market Optimism predicts GWP Growth
54% of brokers feel confident about the future and predict growth of GWP for Underwriting Agencies, while 99.5% of brokers state they will not move to an entirely direct business model with insurers.
2. Speed of Quality Service is Crucial
We see demand to accelerate turnaround times across all business processes, most importantly in claims processing. (As you will have read in some of my recent posts, this is where I see some major insurers letting themselves and their clients down).
While there is still a strong need to have access to highly skilled staff , there is a strong correlation between operational efficiency and customer satisfaction.
3. Customer Experience Rules
Creating a great customer experience is the paramount concern of the broker. Speed of service delivery together with transparent and efficient claims processing are seen as the key contributing factors. Service and customer experience are the most important criteria for Brokers when they chose Underwriting Agency partners.
4. On-line service presents biggest opportunity
The access to on-line services is very relevant to the business of the broker community, however, it is also a dimension where Underwriting Agencies can take advantage of a lot of room for improvement. On-line services do not replace the need for qualified staff and proactive relationship development.
They not only provide transparency but also operational efficiencies.
5. Product development gives the edge
Empowered buyers and competitive markets drive the need for more and more personalised tailoring of policies. Underwriting Agencies not only need to understand customer requirements in niche markets very well, they also need to develop complex and highly customisable products at competitive pricing.
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