Nine hundred brokers promoted so far in product rewards package aimed at top motor performers
LV= Broker is filling the void left following the exit of NIG and the scaling back of Equity Red Star by offering competitive motor products to brokers.
Personal lines director Michael Lawrence said brokers that performed highly on several key indicators – such as loss ratios, audit scores and accident frequency – would be promoted into a separate league of more competitive prices and products.
Around 900 of 2,500 brokers have so far been promoted.
LV=Broker has applied the deal to two of its products, ABC motor and Highway standard motor, and will shortly roll it out for commercial vehicle products.
Lawrence said: “It’s there to support the local brokers because they often complain they don’t have insurers there to support them. That’s been more important this year than anything else because we’ve seen a key broker-only insurer, NIG, pulling out.
He continued: “Equity has effectively pulled out from most of those brokers. Some of the rate increases from the insurers have effectively removed them from some of those areas.
“So we believe these guys can perform consistently well for us, and are rewarding them and giving them the tools to try to compete.”
The deal has been devised for independent brokers, not the bigger intermediaries such as Swinton and AA. Brokers will be relegated or promoted according to their performance reviews every six months.
“We’re not just going to take out people for bad luck. We do have a review process that has the human touch in it. The financial and administrative performance will drive which categories the brokers are in,” Lawrence said. “At the moment, we have chosen what is the most important thing to brokers. As anyone will tell you, what they need is a competitive rate to sell.”
Lawrence was appointed personal lines director last month, reporting to managing director Phil Bunker. He was previously sales director at LV= Broker.