Editor's comment - Don't forget to shout about it

Cross-selling, upselling, products per client, marketing ... all are words we hear when businesses turn their attentions to organic growth. Many brokers have been poor at promoting their brands and have instead focused on acquisition to grow their businesses, in part because brokers hold onto their clients for so long.

Yet why has this been the case? One of the reasons for this is that brokers have consistently performed poorly in the marketing area. Marketing is sometimes an intangible spend and therefore moves down the list of priorities for many, however, it is not just about spending thousands of pounds on adverts: it can be anything from having attractive offices to helpful, positive staff and a great business strapline.

As the consolidators turn their attentions towards growing organically rather than simply through acquisition, expect a greater battle for the minds of customers and ensure that you are not complacent. Although there has been significant progress and times are tough, there is still a need for a greater urgency toward investing in marketing and hopefully insurers can play their part for brokers. (Are they really doing enough to promote brokers in their campaigns or on their websites?) There is surely a great opportunity for insurers to push the commercial broking message to the public and curry favour with brokers at the same time.

What is certain is that, as broking becomes more commoditised and competitive, brokers will have little choice but to spend some serious money on marketing.

Poor differentiation

There are still far too many stories of new business quotes at significantly lower prices than renewals, causing concern for brokers. There are understandable business pressures at insurers and also different prices and commission structures to contend with, though there is little justification for differentials in price of up to 25%. Until there is a fundamental cultural change in this area, the profession will continue to undermine itself.