An increasing number of local brokers are placing business with Lloyd’s Australia in a bid to preserve a direct relationship with underwriters in a time where some industry players are taking their business online.
Around 181 brokers played business with Lloyd’s in December 2010 compared to 215 in December 2012, according to statistics released by APRA.
Lloyd’s general representative for Australia Adrian Humphries told Insurance Business that brokers appreciated direct interaction with underwriters in a time when some insurance players placed business online.
“A lot of insurers and brokers are trying to cut costs and they are using online platforms to do this,” he explained. “However, there is no interaction between the broker and the underwriter. Lloyd’s is picking up business where the broker prefers to talk to the underwriter without the threat of the underwriter going direct. That is the key for brokers and it is not something we are about to change.”
Humphries also attributed the rise to efforts made in promoting the Lloyd’s brand.
“In the last few years, we have spent a lot of time and energy explaining to the broking market that Lloyd’s Australia is a local business that underwrites business on the ground; one that has trust funds in Australia; and one that handles a large percentage of claims in Australia.”
“We are not unauthorised foreign insurers and as a result brokers are increasingly familiar with us,” he concluded.
Lloyd’s annual results will be published on 27 March.