Reducing reputational risk for insurance brokers – How can we enhance public perception?
11 January 2021
19 February 2021
Tackling the poor reputation of the insurance sector is a key priority for insurers, brokers and all those working within the sector.
Much has been written about the insurance sector suffering from a poor reputation due to the damage inflicted on the entire financial services sector following the banking crisis.
Further arguments describe insurance as a ‘grudge purchase’ which accounts for its unpopularity along with the intangible nature of the product. Other areas often
pointed to include poor service experienced by consumers and delayed claims payments – often highlighted by the media.
This research paper discuss four areas which may increase reputational risk and negatively impact the perception of the insurance industry, specifically insurance brokers:
- The sector has traditionally lacked diversity in its makeup – is this still the case?
- Insurance broking has no entry requirements in terms of qualifications - would brokers earn greater respect if they were more ‘qualified’?
- Brokers recommend insurers to customers – the use of unrated insurers has garnered press attention where insurers have liquidated, does the recommendation of unrated insurers affect the way people view insurance brokers?
- Finally, insurance brokers currently work on commission or fee or both – does the way in which brokers are remunerated cause distrust from customers and the general public?
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.