Themes across the pond

Talking to my colleagues at our corporate headquarters in Minnesota the other day, the conversation soon turned to the current state of the broker markets on either side of the pond.

It was amusing to identify certain common trends and issues but there are some significant differences too. In the US, the intermediary market is split into agents and brokers. Agents are contractually tied to one or more insurers and act as those companies' advocates or sales force.

Brokers are independent beasts, just like in the UK. They act as the client's advocate and find the most appropriate cover at the best price from a wider market.

Whether agent or broker, however, all intermediaries must be professionally qualified and licensed. A strictly-enforced programme of continuous professional development ensures high standards and, from a social or cultural standpoint, intermediaries are held in relatively high esteem.

The biggest difference is in each market's progress towards electronic trading. In the UK it is becoming more usual to exchange underwriting information electronically, but in the US paper presentations are virtually extinct. Agents and brokers have embraced the new technology and recognised the impact it can have on improving efficiency and reducing the errors and unnecessary duplication of effort.

But ultimately, both markets face the same challenges. We both want high professional standards, and to do what's best for the client. We both want the industry to be held in high regard by commerce and society at large, we both want to make money, and we both want the intermediary-insurer relationship to be a partnership, not a power struggle.