One of the world’s largest and most well-known market research firms has recently announced it now offers a distribution report for the UK commercial insurance markets for the 2011 year.
Market research company Research and Markets announced the new offering, which gives a comprehensive analysis of the business insurance marketplace ‘s distribution in the UK. Exploring such issues as the acquisitions between business liability insurance brokers and the growth of direct insurance providers within the industry, the report also includes insight and data into broker consolidation and purchasing behaviour for SMEs.
The report’s findings indicate that small and medium-sized businesses are becoming more open to purchasing cover such as professional indemnity insurance online. However, a direct link was found between how large a given SME was and how likely it was that they would purchase business insurance online, which indicates that the bespoke advice provided by brokers continues to have value.
Market consolidation, in comparison to years past, has been muted in 2011, as the report found that brokers are looking for ways to reduce their net debt levels. The market as a whole was found to have experienced some growth, though SME growth has remained slow as a result of the impact the recession had on the formation of new enterprises in 2008 and 2009.
Brokers have gone to some lengths to grow their business. While there are less looking to consolidate in 2011 than in years past, many brokers had joined either a network or club in order to maximise the number of insurers to which they can gain access.
Face-to-face brokerage remains the most popular kind of business insurance arrangements, the study found, in spite of changes in technology.