We have blogged before about the benefits of using a quality broker, whether for financial services or other products. In the UK we have been through a bit of a sea change in that we are more prepared than ever before to look around for products, direct, in the hope of getting a bargain.
Whilst this has undoubtedly been good for consumers, you do not always benefit in the long term from cutting out the intermediary. In my teens, when you wanted to go on holiday, the only option you really had (unless you absolutely knew what you were doing), was to go to a travel agent. Travel agents earned huge commissions from every step in the chain whether the airlines, coach companies or the hotels. Maybe complacency set in, but it became apparent to many individuals that if they could help you buy one part of the chain direct, you could save money. This is when the adverts started appearing about cutting out the middle-man. Usually, they were correct to work on this basis as you were not getting a great additional service, for the 25-40% extra that it cost to go through an agent. But, agents have learned and adapted and the deals plus the service from a good independent travel agent are without question.
We have seen the same with business insurance. Certain insurers decided that they could offer their products direct to the business community, cutting out the broker. But, many of them have now done an about turn and decided only to work with the business insurance broker market. Why have the done this? Because the insurers cannot be all things to all men.
This morning I have had an enquiry from a company importing electrical stock (marine cover required), storing the stock (warehouse insurance required), installing the stock (public liability insurance required) and advising customers on installations, separately for a fee if required (professional indemnity insurance required). Now, that is not a strange example but there are very few insurers that could happily provide all the cover. As a broker we have to look around to get marine cover from one insurer, storage and liability risks from another and professional indemnity from a third. Why do we do this? To give you, the customer, the best deal. It may be easy to question what a business insurance broker can add to the equation, until you have tried to go direct for all of these individual products you really will never appreciate what a broker will do.