Bankers, music and brokers
Bankers just don't get it, but do you?You might think that bankers in Ireland and the history of HMV have little to teach insurance brokers. But I beg to differ. Last month the EU agreed a loan of €85bn to bail out Ireland from its economic crisis. Earlier this week chancellor George Osborne confirmed the UK's contribution and separate loan could amount to over £7bn.
Which was why it was so nice this morning to read about state-owned Allied Irish Bank's intention to payout €40m (£33.5m) in bonuses to employees. The bankers claim they are due to the money for their 2008 and economic performance. I'm guessing that legally this may well be true.
It just goes to show that no matter which country we are dealing with, bankers just don't get it. Without the bailout there'd be no bank. Without a bank there'd be no bonus. No wonder people seem to be getting angrier.
And so on to HMV. According to reports, five years ago the boss of HMV predicted that the internet would plateau at 10% of the music market sales. This week the company announced like for like sales had fallen 11.5% in the last six months. While the management are strenuous in defending the business model ask yourself one question: when did you last buy music in a shop?
Which leaves us with brokers.
In this year's first Sentiment Survey 88% of brokers told us that trading commercial insurance electronically had a natural ceiling of £10,000. Brokers are not bankers. I don't believe they cannot see what is in front of their face. It is a well worn argument, whether commercial lines will go the same way as personal lines however the figures suggest there is a danger of being like the boss at HMV. Just because you cannot see it coming doesn't mean it won't.
For whatever little my advice is worth, I'd say if you only make one New Year's resolution, then make it to put time aside for some thinking time. A space to consider what you trade electronically now in commercial lines and what you'll be doing in five years' time.
The actions are up to you.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Broker
Review of the Year 2024: Markerstudy’s Gary Humphreys
Gary Humphreys, group chief underwriting officer at Markerstudy, hails the completion of the Atlanta deal, dreams of having the MGA’s brand adorn the Tottenham Hotspur Stadium and mulls sitting on the sofa and doing Channel 4’s Gogglebox.
MGAs build confidence in a complex non-standard risk market
In a roundtable hosted by Geo Underwriting at Broker Expo 2024, industry professionals explored the challenges brokers face in placing non-standard risks. This article examines the key themes that emerged from that discussion.
Sicsic FOI uncovers insurance firms’ £2.7m S166 bill
Insurers and insurance intermediaries paid a total of £2.7m for Financial Conduct Authority-commissioned skilled persons reviews in the financial year 2023/24, according to a Freedom of Information request by Sicsic Advisory.
JMG expands into North Wales with Anchor buy
JMG Group company, Butterworth Spengler Insurance Brokers, has bought Anchor Insurance, growing its presence into North Wales.
Lycetts buys broker Cheviot
Lycetts has strengthened its presence in the North East, purchasing fellow Newcastle-based broker Cheviot Insurance Services.
Close Brothers to launch digital commission disclosure consent solution
Close Brothers Premium Finance has announced plans to launch a new digital solution to help brokers fulfill their commission disclosure consent obligations.
Flood Re promises more educational material for brokers in 2025
Flood Re is developing a series of new learning and educational materials for brokers and the wider insurance market for the new year, after recent changes to the scheme.
Simply Business names Julie Fisher as permanent UK CEO
Simply Business has appointed Julie Fisher as UK CEO having held the role on an interim basis.