Are brokers ready for the direct SME threat?

Given the recent announcements from Lloyds TSB and RBS, is brokers' share of the SME market under increased threat?

Geoff: If brokers continue to try to differentiate themselves on price only, then they certainly are under threat from direct writers.

Stuart: I think we need to draw parallels with the private motor business.

A lot of it has gone direct, but still the core of private motor business is held with the broker. While there is a direct threat on the smaller business side - and I agree