Brokers are on their way out of the motor insurance market, reports Insurance Age this week. Latest research from research firm Defunqto appearently reveals that ‘the number of motor policies available via the intermediary channel has fallen to 33%’ down from 40% in 2004, ‘with direct products dominating the sector.’
Under the factually questionable and grammatically provocative sub-heading ‘Brokers are king’ (possibly a misguided attempt at applying the ‘royal we’ to a plural third person?), the Age clutched triumphantly at the straw of broker’s uncontested suitedness to negotiating the complexities of arranging high net worth motor policies, where 90% of available products are available only through intermediaries.
Mike Powell Defunqto’s so-called insight analyst for general insurance, was ready with some diplomatic words: ‘There are still tangible opportunities for intermediaries in the motor insurance sector. Essentially, they need to play to their core strength: giving advice.”
Wonder how the inessential version of that last sentence would have sounded.