The art of joined-up thinking
The advantages of joining broker networks seem assured but, as brokers often fail to take technology into account, real profit may be hard to achieve. James Sharp asks whether they really are the way forward
The economic argument for broker networks looks clear. The average network candidate brings in about £3m gross written premium per year, and garners roughly 13.5% commission from the top five insurers. The networks argue they can negotiate 3.5% extra commission, from which they can pass on 1% extra to brokers.
However, when brokers consider the figures more closely they may not be so attractive. Insurers are often unwilling to increase commission on personal lines and few would be willing to
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