NU Online News Service, July 23, 1:13 p.m. EDT

The vast majority of insurance brokers in the United Kingdom rate speed of policy issuance and underwriting decisions as key criteria in their choice of insurance partner, according to a survey conducted by Celent.

The consulting firm said that its survey, based on a similar one done in the United States, asked 264 brokers in the United Kingdom what goes into their decision-making when choosing a carrier to work with.

The report, "U.K. Insurance Broker Survey: Technology, Service, and Drivers of Choice," found that more than 70 percent of respondents rated speed of policy issuance and underwriting decisions as the key criteria in choosing to work with a carrier. Providing better customer service was second with more than 57 percent.

"Time and time again, the data points to the importance placed on speed by brokers," Catherine Stagg-Macey, senior analyst with Celent's Insurance Group and author of the report, said in a statement. "They greatly value insurers' recent investments in portals that focused on quicker decision time and better customer service."

Celent said the purpose of the report is to "help insurers improve their understanding of distribution channel concerns."

When asked to name a favorite insurer, there was no single favorite. In fact, Celent said brokers chose 32 different carriers for a variety of reasons.

The top reasons for their choices were:

o 25 percent--good relationship.

o 23 percent--professionalism.

The United Kingdom distribution channel is dominated by independent brokers and agents, who process 83 percent of commercial lines premiums. They also account for 35 percent of personal lines premiums, leading all other distributors, Celent said.

Some of the factors that go into choice of a carrier are integration with a broker management system, issuing policies and underwriting decisions, which were scored as must-haves by over 70 percent of respondents.

"These three factors can be summed up in two words: efficiency and speed," Celent said.

Handling claims effectively and providing outstanding service were also high on brokers' lists, according to the survey.

Celent noted that when brokers make a decision on what carrier they want to do business with, technology support is not a top reason. Rather, the decision is based on the production of technology use.

The consulting firm suggests that insurers "need to invest beyond the new business process and to look for efficiency gains through automation in the areas of claims and renewals."

Special Reports /

U.K. Insurance Brokers Seek Speed, Efficiency From Insurers

Related Stories

Recommended For You