Future of Broking: Ataraxia boss - 'Brokers treated disgracefully'

Ataraxia chief executive Stuart Randall, speaking ahead of tomorrow’s debate on the Future of Broking, warns that insurers must raise their game to help the community broker thrive.

Randall says that 15 years ago community brokers would receive a call from a representative every week, but that has now dried up completely as insurers have dismantled their infrastructure in an attempt to save money.

And he says that e-trading has its place, but it can never replace face to face contact.

Randall says: “Insurers have treated community brokers like shrapnel over the years. Most community brokers will agree they’ve been treated disgracefully.

“Because they’ve been the bedrock of insurers profitability, but have been regarded as a nobody.”

Randall, whose business Ataraxia is aimed at acquiring brokers and then guiding them through succession planning, believes demographics is a big threat to the community brokers.

“I would say that 60% are in their final quarter of their lives. There is nobody at the moment. Huge demand for what you do.”

Paul Wiggins, director at BPW Insurance Services, said: “Although, at the smaller end, the market will increasingly shift towards direct and internet based suppliers, community brokers will still have their part to play.”

AXA, on behalf of the insurance industry, is set to address these issues as part of the Future of Broking event.

To add your vote and comment, click on the following statements:

‘Brokers must embrace e-trading to survive’

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‘Professionalism is a must for all brokers seeking a competitive edge’