Brokers feel smothered by regulation, are disappointed with the impact of technology and are willing to sacrifice innovation for maintaining market share.
These were the findings of a survey of 220 chief executives and senior managers of broker firms published by Mazars, in association with Biba today.
Nearly two in three (61%) surveyed said ongoing regulation would affect profits by at least 5%, up from 53% last year.
85% said that the process of regulation had required more work than anticipated, compared to 67% last year.
The second biggest issue for brokers was consolidation. Nine in ten said the number of insurance brokers would decrease in the next 12-18 months, while 25% of respondents had been involved in a transaction in the last year.
Technology was also a concern, with 60% claiming it was either not delivering business benefits or was too difficult to implement.
Robin Oakes, senior partner of Mazars Insurance, said: “In the main, brokers have been pulled from pillar to post by the processes of compliance and are yet to see any tangible benefits for themselves or their customers.”
