Legal expenses insurer DAS has embarked on a massive review of its 3,500 strong broker network aimed at generating more income and delivering efficiency savings.
General manager Paul Asplin said that while the overall strategy was to increase its business from as many brokers as possible, DAS would shed something of the order of "several hundred."
"The current position will not prevail," he said adding that many brokers not generating sufficient business to warrant the costs to the company of maintaining them on its books.
"We will not continue with 3,500 servicing them the way they are being serviced now," he added. However Asplin was keen to emphasise that DAS was not looking for a "mass cull" of brokers.
Instead, brokers who are currently providing low volumes of business would be encouraged to exploit other parts of the DAS group such as MLP.
Das acquired MLP three years ago. Its products are especially suited to smaller brokers with a view to growing the amount of business they place through the company.
"It's a tidying up and a review of how to get the best out of brokers," said Asplin.
Senior management has been discussing how to proceed over the last number of weeks.
The review of broker operations will be completed by Christmas with a strategy for the future rolled out by the spring.
