MARKET REPORT 13

“

Which? members
expressed a lack of trust
in comparison sites and
also said they did not
High net worth
provide users with a
good enough service.
”
- cross selling
with products that make the websites the client has diffi culty with a personal insurance simply why a high net policy is superior. This
most commission. Over 2,500 members claim, and that this could end up costing the is namely that the policy cover is far broader
were surveyed and all the sites in the survey broker a signifi cant commercial account. and there is a clear focus on the customer
received low customer scores. in the event of a claim. So, once a broker
The reality is however that rumours about recognises that cross selling helps renewal
This distrust of comparison site products this type of account’s demise have been retention, it is merely a question of how
clearly demonstrates that price alone is greatly exaggerated as cross-selling actually they will present this information to their
not enough to satisfy customers and that signifi cantly increases renewal retention. clients.
there is an appetite for service and value. This is because, in fact, the reverse often
What the Which? Survey also shows is that happens as the high net worth elements Whether brokers cross sell or directly
these customers are ready for an alternative of extended and high-quality cover helps market to potential customers, the value
and there is no one better placed than brokers to retain commercial business. that they bring as professional client
the professional, friendly and often local advocates is a message many will be
services of a broker to provide it for them. Because high net worth insurers have a ‘paid receptive to.
claims’ mentality, this should be a further
Certainly marketing plays a part in alerting reassurance to brokers when offering The direct writers and aggregators have
the disillusioned former aggregator personal insurance to valued commercial nothing to compare with what a broker can
customer to this fact. However, while clients. do for a client. I hope as further customer
marketing ‘the value brokers bring’ is dissatisfaction about direct channels comes
important, by far the simplest and easiest It should also be reassuring to potential to light this will embolden brokers to take
way for brokers to access these clients is by customers who see aggregators and direct up the challenge and press their advantage.
cross selling to existing commercial clients. writer products for what they are. Having
successfully sold to the same customer And, while the present day economic
The desire by some brokers to stabilise and twice, a broker should feel confi dent this concerns still requires brokers to be in
grow their businesses, by adding a mid or will have demonstrated their worth and tied survival mode, I believe this year also has
high net worth client base to their portfolio, that business all the more closely to them. the potential to see brokers take matters
is an aspiration that predates the recession. into their own hands and change things for
There is a further misconception preventing the better.
There are though some prevailing brokers from offering high net worth to
misconceptions at work among brokers that commercial clients that they have to have
prevent them asking commercial clients that expert knowledge about fi ne art, antiques
all important question, ‘can I quote for your or other valuable possessions.
high net worth insurance?’
Many fear being caught out on this but
The chief myth about cross-selling usually in fact they do not need to have a full
involves a scenario where a commercial understanding of high net possessions, but
February 2010 Insurance Brokers’ Monthly
Focus 12-19 FEB.indd 2 1/2/10 13:42:37
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