Brokers are moving into 2003 enjoying a resurgence of inflence in the market, according to National Insurance Brokers Association CEO Noel Pettersen.

He said the latest JP Morgan/Deloitte Touche Tohmatsu survey on the general insurance industry has demonstrated that underwriters recognise the value insurance-buyers are placing in brokers.  

In 2000 insurers told the survey compilers they expected the role of brokers to diminish rapidly. At that time brokers held 76% of the distribution; this was predicted to fall to 60% by 2005.

“The opposite has happened,” Mr Pettersen said. “Today brokers represent 86% of the distribution and the insurers expect brokers will control 79% by 2007.” 

He said the latest survey results reveal a turning-point in the way insurers relate to brokers. “I think there is now a realisation that the direct market simply can’t provide the sort of services that businesses, in particular, need,” he said. “Brokers bring something very valuable to the insurance process – knowledge and reliability – and that is being recognised.”

The report said the insurers’ new acceptance of the dominance of brokers in the commercial market “confirms our belief that for underwriters to make any significant inroads into this line of business they must develop relationships with brokers rather than attack their position from a direct basis”.

Mr Pettersen said change is taking place rapidly, but some essential truths about the industry are also becoming clear as the industry stabilises around fewer players and a new drive for profitability. “The opportunities for brokers are continuing to open up.”