Global challenges face middle market brokers

Article Abstract:

Property-casualty insurance brokers specializing in commercial lines programs have been irrevocably effected by the globalization of the property-casualty insurance market. The globalization of the market has boosted capacity in the domestic market and kept prices low. Ironically, the globalization of the market has increased the parochial nature of insurance markets. International insurers are writing more local risks, but their use of information technology has increased their knowledge of local markets, which permits them to eschew higher risks which must, in turn, must seek coverage from locally based brokers.

International aspects

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Brokers caught in vise must adapt to survive

Article Abstract:

Insurance brokers face double pressures from both property casualty insurers and insurance customers. Insurers, who are experiencing a soft market, are looking for ways to cut costs, and customers are forcing brokers to justify their commissions and fees. Some brokers have lost much of their traditional higher-margin insurance business because many insureds are choosing to self-insure. Expansion opportunities for brokers exist in the areas of new ventures, mergers and acquisitions and strategic alliances.

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Specialty programs offer survival niche for agents

Article Abstract:

Insurance agents can ensure their success and boost their competitiveness by selling specialty insurance products to niche markets. A successful speciality marketing program is predicated upon five pillars: identifying the niche market, carefully defining the marketing program, obtaining a two- to four-year commitment from the insurance carrier, investing upfront a minimum of $10,000-$15,000, and hiring a marketing or public relations to publicize the program.

Column, Insurance agents

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