Insurer offers to administer whole personal lines books for brokers
Zurich has launched a service to administer whole personal lines books of business for brokers.
The service called Gemini Future expands Zurich's current broker support service, the insurer said.
Mark Winlow, managing director of UK personal lines at Zurich, said: "It means brokers won't have to sell their personal lines books to a direct insurer - they can transfer them to us."
Zurich will administer the policies, handling leads and renewals, under the broker's brand.
Winlow added: "We have administered parts of books of personal lines business for some time now."
The move came as independent research conducted for underwriting agency PlusOne revealed that despite the perceived cost burden of administering small personal lines books in-house, 96% of brokers do not outsource them.
The research found that 42% of brokers handle these accounts only as accommodation business for commercial clients, but only 4% are currently outsourcing them.
The approach was widespread but especially prevalent among provincials and super-regionals, according to the study.
The research also found that 21% of brokers were interested in outsourcing, with the most popular book size to outsource being up to £1m.
PlusOne managing director James Wallis said: "Although only 4% have outsourced so far, the survey shows that many more are considering adopting this strategy."
He added: "Based on our own experience outsourcing a book of personal lines business from £250,000 to £10m, the broker continues to generate profit while the day-to-day hassle is removed and customer service improved."
