The broker of tomorrow

Many brokers are looking forward to complying with Financial Services Authority regulation so they can concentrate once again on growth. NIG believes the broker market has a strong future and it is one based on increasing professionalism and expertise. However, most agree that the image is not as good as it could be.

Although, it may not suit all, should more brokers be looking to charge fees rather than commissions? The middle ground is to introduce a fixed-fee system. The professionals who do this are in the position of knowledge with regard to time sheets and the like. Also, remember the insurer you select is more than just a name on a list. I would urge you to look beyond its security rating. You should look at its parent company, shareholders, and so on.

Nearly all insurers put forward quotations on a gross premium basis.

I encourage brokers to ruthlessly analyse each transaction to decide whether a fee or commission basis is the right one for you. Also, maintain regular contact with your clients, this way you can keep them up to date with the market and ease your way into any renewal.

The IT market is changing. Some brokers are saying that they are receiving more than 10% of business via the internet. Admiral, for example, now receive 80% of quotes and sales through the internet.

Most brokers are generalists and develop specific expertise over a period of time. With this expertise a broker can start to sell on quality and price rather than on experience, increasing business.

Brokers should select an industry or group, depending on expertise and competition. Recognising a group of trades and markets is a good way of finding new business.

You are not on your own in developing an approach targeting a specific trade - align yourself with insurance partners that have similar aspirations.

The crucial thing is to present how your ideas will aid both you and the insurer - we both have the same goal after all.

In conclusion, brokers should become 'more professional', look seriously at moving towards fees and in finding ways of maximising your success.

Be the broker of tomorrow and enjoy the success.