Brokerbility's Stutz says independent brokers will gain strength
CCV chief executive Michael Rea has said brokers will need to get their loss ratios right as insurers tighten the screws during the recession.
Rea said: “There is a huge focus on expense ratios and a big focus on commission, and there will be realignment.
“It is all about getting your loss ratios right.”
Rea told the audience at the Insurance Times Broker Forum last Friday that insurers are looking to push up rates, but are facing a tricky time.
Rea said: “Rates need to go up and they need to go up in a slightly more consistent manner. The big challenge will be responding to the economy, and that will squeeze a number of [insurers].”
Brokerbility managing director Ian Stutz told the audience that the independent broker would continue to gain strength next year because of their high levels of service.
Stutz said: “One of the reasons that the independent broker will flourish is that they are fixated with what clients want.”