Foreword

The Fourth Professional Broking Sentiment Survey has been a valuable insight for insurance companies. We have heard about the true impact the Financial Services Authority has had on brokers' businesses so far, the high regard for service and views on the current state of the market.

It is heartening to hear that brokers score Norwich Union highly on its service offering. Service has always been a key element in Norwich Union's business proposition to brokers, and strives to ensure it provides easy access to decision-makers, quick and accurate transactions and timely renewals.

Nevertheless, while it is widely understood that good service is fundamental to any business - acting as a point of differentiation for broker and insurer alike - it is disappointing to hear that the insurance market in general is not quite hitting the spot.

With 73% of respondents considering service to be staying the same or worsening, and only 18% commenting that it is improving, all insurance companies need to be concerned. What are insurers doing wrong? Why is service not improving? And what are the solutions?

Almost all brokers expressed concern over the softening of the market. For some time, Norwich Union has been following a clear and consistent underwriting strategy. This aims to ensure two key things. It helps its brokers to understand where it is in the market and what Norwich Union will write. In addition, it attempts to stabilise the market and flatten the high peaks and troughs that have been seen in the past. Of course, Norwich Union cannot achieve this on its own, but is endeavouring to do all it can to avoid the potentially market damaging cycles.

Operating within a difficult market is likely to bring increased demand on service from brokers. They may feel that insurers are taking a firm approach when more flexibility is required. It is down to the insurer to truly understand the broker on an individual basis, finding out what is required and what needs to be done in the interests of the client. One type of service is not fit for all.

Many may believe that regulation under the FSA has had an adverse affect on service levels. However, if the FSA can provide guidance and consultation to help inform the market, surely this can only have a positive effect. Insurance companies should be delivering a first-class service every time, without the need for intervention from the FSA.

Response on the cost implications of regulation was stark. We have to remember that change for the better usually comes with an initial cost. So far, the market has borne this cost and may indeed need to do so for some time to come. It is important, therefore, that insurers and brokers alike seek out the opportunities that come with it.

Norwich Union's account managers and underwriters speak to brokers every hour of every day and have found that the vast majority of brokers are optimistic about the future. Norwich Union shares this optimism and it is the responsibility of all those working in the industry to improve how the sector is perceived by the end-customer.