Controversial findings of a Norwich Union survey suggest insurance brokers comfortable with technology would not be sad to see a thinning of the ranks of intermediaries who are less used to IT in business.
Defined as “techno savvies” by NU, these brokers now account for about a third of insurance intermediaries, the provider claims.
"They are also in favour of a less populated broker market and would not be unhappy if this was brought about by FSA regulations," the provider states.
Using IT will play an important part in maintaining businesses, “and those who refuse to embrace it will struggle,” says Ken Wallace, NU intermediary business director.
Most intermediaries, some 80% of the 400 surveyed, are “optimistic about the future” Wallace adds.
”While overall concerns over competition are increasing, the fear of FSA regulations appears to have fallen.”
Techno savvy brokers are competing with three other groups of intermediaries classified respectively as “corner shops”, “fading families” and “old style pros”, NU adds.
Corner shops look to retain “the personal touch and independence of smaller companies”. Fading families look to blame regulators and government for perceived threats their family-run businesse. Old style pros look to loyalty of existing business clients for future security.IFAonline
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From 6 April 2019