How will brokers survive? Can the key be found in diversity?

Insurance is a competitive industry, operating in challenging times; under this immense pressure, brokers need to keep and grow their list of clients. To do this, they should diversify their offering and expand into new areas.

“Brokers today must be willing to adapt if they want to be successful,” says Sujeeth Bishoon, Executive Head at Acuideas. “By diversifying, brokers are able to provide a total solution, including cover for all areas where their client is exposed to risk.”

A broker first conducts a needs analysis to highlight the gaps in cover, before advising a client on a product to manage any potential risks. When a broker diversifies, they have a broader knowledge of available products, allowing them to offer their client more value.

“If a client has teenagers, their child’s social media activity could be a risk. However, if the broker is familiar with social media liability insurance, they can suggest this to their client in order to cover the client for the actions of their child,” says Bishoon.

How do brokers diversify?

Education is essential for brokers who want to diversify, particularly if they specialise in one type of insurance. By increasing knowledge, staying up to date with changes in the industry, and broadening the types of policies they sell, a broker can offer their client the best available advice and cover, wherever the client is exposed to risk.

“Brokers need to build a model that keeps them relevant in a highly competitive market, and which is resistant to changing economic conditions. To do this, we recommend that they speak to us about diversify their offering. We are experts in researching and developing new TCF (Treating Customers Fairly)-compliant products to increase a broker’s value proposition,” says Bishoon.

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