Communication remains key

Some economic pundits are suggesting that the recession has bottomed out, however, as pleasing as that sounds, broad agreement suggests that recovery will be protracted, which means continued challenges for our industry. Insurance is built on the strength of relationships and we all know that good communication is the bedrock of this. In these challenging times, insurers and brokers must communicate more effectively than ever to minimise the economic impact on their businesses and strengthen their relationships.

From an insurer's perspective, greater levels of underwriting scrutiny are required in the face of front-end fraud risks and the increased temptation for individuals or businesses to restrict cover. Recession brings both increased and fraudulent claims, requiring critical discussion. Where communication channels are open and clear among insured, broker and insurer, business can transact efficiently.

The single most important activity for brokers in this climate is prospecting new business while retaining that won already; it is evident that businesses require more flexible options for their insurance when times are tough. Where there is highly effective communication between the intermediary and the insurer at all levels, solutions can be arrived at promptly to everyone's benefit.

In the insurer-broker relationship, timeliness in communications is vital. Technology has opened up increasing options, however, many of these technological advances have diminished the effectiveness of communication: how many times have you urgently tried to contact someone by phone only to be diverted to voicemail? When you call an insurer, you expect to speak to someone. Technology only enhances relationships that have been established face to face. Broker forums, seminars, underwriter visits, relationships and insurers' senior and executive managers are all essential in forming a basis for effective communication at all levels.