Grabbing innovation from the jaws of regulation

Following regulation of the intermediary sector, the question remains as to what extent brokers can now embrace a regulatory framework. Further to this is their acceptance of this as an ongoing commitment in terms of time, cost and resources, while - at the same time - seeking out business opportunities. Can they develop innovative ways in which to attract new customers and protect their existing market share?

There is no doubt that regulation has added an additional burden, specifically in these areas. Equally, there is also no doubt that forward-thinking organisations can build on the structure that this framework will provide to develop new ways of working.

Of course, there will have been lessons learnt and eyes opened to examining and controlling costs in a sector that, historically, has not always been good at understanding where revenue was truly earned and spent and where real profit lay. This must surely bode well for those firms that are willing to use these principals in all areas of their business.

The distribution of general insurance remains an area of continual change. The future of personal lines in the intermediary market and, in particular, private motor - away from the major distributors - is under pressure. For commercial lines, the threat from direct writers and bank/brand assurers is a real one.

Intermediaries are not alone in facing the challenges of a regulatory framework and greater need to control cost. Insurers have been regulated for some time, and the burden for them in particular is in managing the increasing demands for capital while maintaining low expense ratios and delivering the required returns. This has led them to review how they work and, crucially, with whom.

Both intermediaries and insurers have the opportunity to learn from each another - to harness one another's skills and to work together to bring fresh ideas, products and solutions to the market place. Much can be made of the sharing of resources and skill in an arena that is often woefully short of the former and sometimes of the latter.

The opportunity exists, more now than ever, for all those involved in the distribution of general insurance to genuinely work together to develop this market for the long term.

Are they really ready to take up the challenge?