Tips from the top: Mega Capital

Tips from the top: Mega Capital

Insurance Business caught up with Michael Gottlieb of Mega Capital this week as they received the Top 10 Brokerages top spot for the second year running.

Mike Hooton, Group Executive, Colliden: As a company focused on intermedia distribution, we’re extremely pleased to support the Insurance Business Top 10 Brokerage rankings for the second consecutive year. 

Well done to every brokerage that participated. And special congratulations to the brokerages that made it into the top 10 rankings.

Congratulations to Michael Gottlieb and the staff of Mega Capital for ranking #1 for the second year in succession. 

Insurance Business TV: After taking home the Top 10 Brokerages trophy for the second year running, Mega Capital’s managing director Michael Gottlieb took 5 minutes to talk to us about what he considers to be the biggest challenges for the industry.

Michael Gottlieb, Managing Director, Mega Capital: The Insurance industry is a very mature and resilient industry. And it’s one that I think can withstand most shocks or issues that it comes across. Probably the biggest issue is just gonna be access to very cheap capital and the excess amount of capital that is available to the insurance industry. It’s created an incredible increase in the amount of supply. And I think for both manufacturers, or insurers, as well as distribution – in other words, the brokers – they really need to look for ways to differentiate themselves and provide value in the supply chain. Because there is certainly going to be, with a further capacity, and the increase in supply, there is going to continue to be a pressure on pricing.

IBTV: When it comes to advice, Gottlieb says that brokers must be in touch with clients’ perceptions of value. 

Gottlieb: I really think brokers need to understand what their clients perceive as value, and ensure that they’re providing this value to their clients. Most clients are really looking for advice, advocacy, and access to a wide range of insurers. And I think if brokers are providing this service to their clients, they’ll be in a good situation to continue to remain relevant in the industry and maintain their clients. However, if brokers are rarely providing any information or transactional service, there’s probably more efficient ways for clients to do this service. So really the key thing for me is understand the value proposition, and ensure that if it is a right advice, advocacy, and access to the market, that you are providing that to your clients.

IBTV: Finally, Gottlieb’s big wish for 2015 is the industry changes its attitude about its perception problem.

Gottlieb: I’d really to see the industry tackle the problem or the poor reputation of our industry. I think that we’re a great industry and we have a lot to offer. And often when there’s criticism around our industry we’re very quick to defend it. And I just think we need a plan rather than defending it to understand what these perceived issues are and create a plan to improve the value proposition to the clients rather than continue to defend the position.