Brokers continue to dominate commercial lines
Insurance brokers still monopolise the commercial lines market with a share of 83%, according to the latest JP Morgan Deloitte General Insurance Industry Survey.
Direct insurers have just 6% of the commercial lines market, despite underwriters predicting at the turn of the century they would generate up to 30% of total direct sales by 2004.
In personal lines, brokers take an 8% share while direct insurers dominate with 67%.
Brokers’ share of personal lines has increased since 2003, while the direct distribution channel has hardly changed. The survey suggests this is largely due to brokers handling commercial clients’ personal lines needs.
Since the survey was conducted in 2007, brokers’ share of the commercial market has soared. Deloitte data shows that domination of the market has been consistent over the past 10 years.
Predictions that the internet would revolutionise the way insurance products are distributed have also failed to come true. Underwriters now predict a market share of just 0.18% by 2013.
Brokers surveyed for the report say the internet has failed to gain popularity within the commercial sector because customers prefer to talk to someone face to face.
Direct insurers have just 6% of the commercial lines market, despite underwriters predicting at the turn of the century they would generate up to 30% of total direct sales by 2004.
In personal lines, brokers take an 8% share while direct insurers dominate with 67%.
Brokers’ share of personal lines has increased since 2003, while the direct distribution channel has hardly changed. The survey suggests this is largely due to brokers handling commercial clients’ personal lines needs.
Since the survey was conducted in 2007, brokers’ share of the commercial market has soared. Deloitte data shows that domination of the market has been consistent over the past 10 years.
Predictions that the internet would revolutionise the way insurance products are distributed have also failed to come true. Underwriters now predict a market share of just 0.18% by 2013.
Brokers surveyed for the report say the internet has failed to gain popularity within the commercial sector because customers prefer to talk to someone face to face.