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Reducing reputational risk for insurance brokers – How can we enhance public perception?

Research

Publication date:

11 January 2021

Last updated:

18 December 2023

Author(s):

Selena Kearvell

Tackling the poor reputation of the insurance sector is a key priority for insurers, brokers and all those working within the sector.

Much has been written about the insurance sector suffering from a poor reputation due to the damage inflicted on the entire financial services sector following the banking crisis.

Further arguments describe insurance as a ‘grudge purchase’ which accounts for its unpopularity along with the intangible nature of the product. Other areas often
pointed to include poor service experienced by consumers and delayed claims payments – often highlighted by the media.

This research paper discuss four areas which may increase reputational risk and negatively impact the perception of the insurance industry, specifically insurance brokers: 

  1. The sector has traditionally lacked diversity in its makeup – is this still the case?
  2. Insurance broking has no entry requirements in terms of qualifications - would brokers earn greater respect if they were more ‘qualified’?
  3. Brokers recommend insurers to customers – the use of unrated insurers has garnered press attention where insurers have liquidated, does the recommendation of unrated insurers affect the way people view insurance brokers?
  4. Finally, insurance brokers currently work on commission or fee or both – does the way in which brokers are remunerated cause distrust from customers and the general public? 

 

Read the research paper HERE

 

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