NU Online News Service, March 1, 2:03 p.m.EST

Large insurance brokers do not rate as highly as their smaller,middle-market counterparts when it comes to customer satisfaction,according to a survey of large corporate insurance buyers.

Greenwich Associates released its list of the 2011 GreenwichBroker Excellence Award Winners which went to:

• Arthur J. Gallagher & Co.
• BB&T Insurance Services
• Lockton Companies Inc.
• Wells Fargo Insurance Inc.

Five companies received honorable mention:

• Alliant Insurance Services
• Beecher Carlson Holdings Inc.
• Hub International Ltd.
• Hylant Group Inc.
• Integro Insurance Brokers

The rankings, based on 676 respondents to the consulting firm'sU.S. Large Corporate Insurance Study, found that when it comes tocustomer penetration of large corporate clients, Marsh &McLennan, Aon Corp. and Willis Group still hold the major portionof the market. MMC holds 45 percent, Aon 41 percent, and Willisholds 23 percent. The total market percentage exceeds 100 percentbecause of overlap in use of brokers by risk managers, Greenwichsaid.

However, measuring them against competing insurance brokeragefirms, Greenwich said that in a series of categories—among themclaims coordination and customer service—the smaller brokersoutshined the three major brokerage firms.

The winners of this year's excellence award were rated“excellent” in customer satisfaction by at least 50 percent oftheir clients, noted David Fox, Greenwich Associatesconsultant.

“In comparison, none of the major brokers are rated as'excellent' in customer satisfaction by even 40 percent of theirclients, and certain firms fall below 30 percent,” Mr. Fox said ina statement.

The major differentiator between the three major brokers and themiddle-market brokers, according to the survey, is devotion toclient service.

“Even if the overall capabilities of these firms fall short ofthose offered by the major nationals, corporate risk managers say the smaller firms are able tomarshal the resources needed to meet their needs because theirorganizations are built on client-centric models,” said Mr.Fox.

What large brokers offer is international capability thatmiddle-market brokers lack and can't duplicate.

The advantage for middle-market brokers, the survey found, isthe “day-to-day basics of managing coverage and claims for clients.The survey said risk managers rate middle-market brokers as being50 percent more effective than large firms in claimscoordination.

“Risk managers see smaller brokers are more interested in beingpartners, as opposed to providers,” said Mr. Fox.

When it comes to assessing the three major brokers, Greenwichsaid in terms of overall satisfaction, both MMC and Willis stood atover 30 percent of those surveyed scoring the firms as “excellent”and showed improvement over the prior year.

Aon, on the other hand, “ranked well behind the pack,” Greenwichsaid, and saw its share of “excellent” ratings decline, going from39 percent in 2009 to 29 percent in 2010.

Mr. Fox said the survey results indicate that the major nationalbrokers are relying upon historic relationships and internationalcapability to maintain their current market levels. However, theincreasing sophistication of risk managers has them reaching outfor a greater balance between international capabilities and clientservice for the day-to-day things.

“The challenge to the major U.S. brokers is to respond to thesedemands by stepping up the quality of service they deliver to largecompanies in the United States,” said Mr. Fox.