Managers tackle the recession, cutting expenses and consolidation

A roundtable published over two days in the Biba Daily - which was available at the conference - covered the recession, signs of a hardening market, the future of broker consolidation, cutting expenses, the impact of the internet on customer service and cutting expenses.

Commenting on keeping staff morale high, Tony Simper, managing director at Woodstock Insurance Brokers, said: "The wrong knowledge is dangerous. You want them brought into the vision of the business but bringing them into the nub of the finances can have the wrong effect. Morale is a fickle animal: sometimes it turns for no other reason than assumption. You can make it worse by focusing on it." He added: "Growing the top line is much more exciting than cost-cutting. When the place is buzzing, morale tends to be good. Employees don't have time to stand around and worry about jobs."

On insurers turning away from the consolidators towards independent brokers, Nick Sharp, managing director at broker Barbon, said: "Consolidators will continue to have their place. The truth of the matter is that insurers never had a gun held to their head to deal with them in the first place. Once again, it comes down to consistency: some insurers seem to take pleasure from changing their minds." Chris Guillame - chief executive at Open GI - and Mike Crane - commercial director at LV Broker - agreed that consolidators need to change their models in the future.

Speaking about the impact of the internet on customer relations, Graeme Trudgill, technical and corporate affairs executive at Biba, said: "Complaints to the financial ombudsman are rising a lot and that is because people have had quotations from price-comparison sites and ended up taking cheap products that are unsuitable. This shows they should call their broker and take the advice they need to ensure their insurance covers their needs." Alison Andrews, head of business development at Groupama, commented: "The insurers' favourite comparison sites will be those that deal with the TCF aspect and incorporate access to advice."

John Mason, business development director at Ingham Underwriting, gave warning to insurers cutting back on customer service through cost cutting: "Brokers have enough choice; they will go elsewhere if they are not receiving the service they deserve."