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Insurance Business | 08 Jul 2014, 08:43 AM Agree 0
Insurance brokers are crying out for more frequent and better service from BDMs, with many claiming they are seeing less BDM boots on the ground.
  • Terry | 08 Jul 2014, 09:38 AM Agree 0
    Insurance Business brokers survey was pretty broad.I'd be interested in the segmentation of the market brokers are referring to. if its predominately personal lines and small SME I can understand the current servicing in this electronic age. if its referring to tailored offering and medium large risks than it is a servicing problem. Also the age of the respondents. The old dinosaurs in the industry still want to operate like its 1975
  • Mark | 08 Jul 2014, 09:55 AM Agree 0
    I am in a rural area - one of my BDM's visits once a month, but the majority of the time the only correspondence we have is him sending through renewal report every week chasing premium. Another contacts us to let us know we have discounts if we need it. The others I rarely see. NOT ONE has taken the time to sit down with our office and identify (a) what our target market segments are and (b) how their brand can assist us in building our business with them through these segments. Give me a BDM that does that and they can walk away with an enormous portfolio....
  • Luke | 08 Jul 2014, 10:11 AM Agree 0
    Totally agree re BDM's. We use to have visits from one companies BDM weekly. Now we have not seen one from them for 18 months. The strange thing is there are two other large agents/brokers in the same town and they get visits but as we are not as large as them we fall in a different division so that BDM cannot visit us. We have one BDM from Allianz that visits us fortnightly, sometimes weekly and guess what they are getting 60-70% of our new business, purely because of the service we receive, plus we have a drink once a month
  • Buddy | 08 Jul 2014, 10:25 AM Agree 0
    Unless BDM's are given authority to quote on business then they remain to be what the acronym stands for - Brochure Delivery Men
  • John | 08 Jul 2014, 11:39 AM Agree 0
    There is certainly a difference between insurers as to the level of BDM support. Some have good knowledge, authority & discounts even though we don't see them that often wheras others come into the office reguarly for no demonstrable benefit to either party.

    A lot of insurers also put the cart before the horse & have the attitude of give us the business & then we'll give you the support for future business. I can't think of another industry that sells itself in that manner. It doesn't wash with, give me good service & then I'll give you my business.

    Underwriting agencies are generally better in this reagrd and are more prone to actually see brokers as their clients. Wheras some insurers clearly have the attitude that we are parasites feeding off them.

    We recently moved a scheme to a different insurer & not one client questioned it or requested to stay with the previous insurer. They just took our word as to the benefits because they see themselves as our clients, not the insurers.
  • An insurer | 08 Jul 2014, 01:39 PM Agree 0
    Brokers cannot continue to drive premiums down AND expect high levels of service at the same time. Good service costs money and resources to provide, and these costs need to be passed on to consumers by their brokers.
  • John | 09 Jul 2014, 09:10 AM Agree 0
    'An insurer' - Your point doesn't add up I'm afraid. Brokers do seek value, as they ought to do and are expected to do by their clients. But there are larger forces at work, the effects of local brokers on premiums are somewhat trifling when compared to market capacity issues, re-insurance rates or the emergence of new underwriting agencies.

    It also needs to be remembered that a lower premium equates to a lower broker earn, so it isn't something taken lightly. Good service can cost money but in my experience we get pretty good service from some insurers that might be deemed middling with whom we have a small book and poor service from some of the 'gold plated' insurers that we support heavily. So there isn't an absolute correlation there, it comes down to the insurer's internal processes & priorities.
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