Other brokers seen as greater threat than banks and direct writers, according to survey
The majority of brokers rank other brokers as their greatest competitive threat ahead of banks and direct writers, according to a report by Datamonitor.The UK Commercial Insurance Distribution 2003/04 report, which incorporates a survey of commercial brokers, also revealed that two-thirds of brokers are satisfied with their insurance partners. Service levels and quick response times were listed as the most important influencers on broker satisfaction.Datamonitor also surveyed small and medium enterprises (SMEs), finding that brokers continue to dominate the SME market, with a 98% market share. But, with 67% of SMEs open to the idea of buying insurance direct, provided they received personalised service from their insurers, the survey raises questions about the robustness of this market.The survey also found that 25% of SMEs were thinking of changing brokers over the next year, with more than three quarters of those motivated by price.The report found that the UK general insurance market (including Lloyd's) grew by 10.4% in 2002 to a gross written premium (GWP) of £37.6bn. The size of the commercial insurance market exceeded the personal lines insurance market for the first time in 2002, with GWP of £19.2bn and £18.4bn, respectively.
AXA commercial income hits £1bnAXA's commercial lines premium income will pass £1bn by the end of 2003, two years ahead of target.AXA commercial and intermediary lines director Mark Cliff said the division had outperformed its target of £1bn in premium income by the end of 2005, and had more than doubled the figure since 2000.Cliff attributed the success to the strength of AXA's relationships with its Premier Partner brokers. In 2000, commercial business from AXA's Premier Partners represented less than 20% of its premium income, a figure that had grown to 51% today, Cliff said. Of the £1bn, property accounts for £500m, liability casualty £350m and motor accounts for £150m.