'Value creator' brokers are set lower business targets to achieve rewards
Zurich has lowered the premium and profit targets for its 'value creator' brokers in recognition of the softening market.
Zurich UK Commercial head of market management David Smith said that in light of the difficult market conditions being experienced by brokers, Zurich has lowered the business targets its 150 'value creator' brokers must achieve.
By lowering the targets, Smith said its 'value creator' brokers would be able to obtain increased payments for the same amount of business.
'Value creator' brokers were those who consistently outperformed their direct competitors, Zurich said.
"There has been less business moving from broker to broker and rates are falling," Smith said. "What this change does is provide the potential for rewards where the broker is still providing us with profit.
"It is a hard year for brokers and, providing they are producing profit, we have increased the reward they can get."
Smith said the response to the initiative had been extremely positive.
"We have realised that it is a difficult year for them and we are still rewarding them for the value they are providing us with," he said.
Smith stressed the rewards were not about the profit each broker produced, but their performance in relation to their market sector that allowed brokers to qualify for the payments.