As they would say in the BBC comedy, The League of Gentlemen, the strength of brokers is based on a “local service for local people”.
As they would say in the BBC comedy, The League of Gentlemen, the strength of brokers is based on a “local service for local people”.
The latest Norwich Union research conducted by Holden Pearmain reveals that more than 60% of SMEs prefer to deal with local businesses, and 79% actually prefer to meet their suppliers face- to-face.
Familiarity breeds “content” in the case of brokers, with more than 80% of small business owners choosing to deal with a broker they know personally.
Getting a good deal is clearly part of any broker-client relationship, but the research shows that sound advice is also considered to be vital, with 80% of those using a broker considering them to have the right mix of skills and knowledge to help their businesses.
However, the findings showed a growing trend for brokers to be more vulnerable than accountants, solicitors, IFAs and even banks when it came to SMEs taking their business elsewhere, if it made financial sense.
Equally, overall use of brokers has dropped by 9% and an emerging threat appears to be coming from the banks, whose offers of commercial insurance have been noted by more than 20% of SMEs.
Debbie Heaney, head of knowledge and customer development – commercial product management, Norwich Union says: “When it comes to obtaining their insurance, small and medium sized businesses are far closer to a local broker than an insurer, thanks to the understanding brokers have of their clients’ business needs.
“But brokers should be aware of the important role their added value services play in maintaining those relationships, as firms are willing to shop around for better deals in an expanding market for commercial insurance.”
“Norwich Union is committed to working with brokers to ensure the advice and service they provide for their clients is valued and competitive. Through our regular research programme, we aim to inform brokers of the shifts in the market and the strategies needed to maintain customer loyalty.”
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For further information contact
Jon Clements at Staniforth, tel: 0161 274 0130/mob: 07989 414486
or
David Ross at Norwich Union, tel: 08703 666 865/ mob: 07786 526350
Notes to editors:
- Norwich Union is the UK’s largest insurer with a market share of around 16 per cent and is more than 1.5 times the size of its nearest rival. It is also the largest personal lines insurer.
- It has a focus on insurance for individuals and small businesses. It insures:
- one in five households
- one in five motor vehicles
- more than 700,000 businesses
- Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct.
- Norwich Union’s news releases and a selection of images are available on the Aviva internet press centre at www.aviva.com/media.
- An ISDN facility is available for studio quality interviews. Call the press office on 08703 66 68 68
For all life & pensions media enquiries 08703 66 68 73
For all other media enquiries 08703 66 68 68