Daily Insurance Industry News
Daily Insurance Industry News
Tuesday 16th of October 2018
August 28, 2009

Aviva issues recession advice to brokers

by David Masters

Story link: Aviva issues recession advice to brokers

Aviva issues recession advice to brokers Aviva issues recession advice to brokers

If insurance brokers are to weather the recession, they must pay close attention to customer needs, Aviva said in a new report.

“With customers increasing their propensity to switch, and a higher demand for voluntary excesses and/or reduced cover, brokers with the greatest customer knowledge will be best placed to adapt services and products to meet clients’ changing needs,” Aviva said as it launched its report, ‘Your Practical Guide to Recession’.

As well as understanding customer needs, brokers must maintain strong relationships with brokers, Aviva said.

“The stronger the relationship with insurers, the more likely a broker is to hang on to his customer,” said Janice Deakin, Aviva’s corporate sales director.

Brokers should expect a rise in both fraudulent and genuine claims as customer budgets are squeezed.

“Fraud, which according to the ABI, now costs the UK market £1.9bn, is continuing to grow and we expect to see an increase in arson and theft claims, as well as an overall rise in genuine claims as businesses are less likely to absorb smaller claims,” said Deakin.

Despite these difficulties, Aviva believes brokers should remain optimistic.

“It is not all doom and gloom – some sectors have been fairly resilient, with some even enjoying new growth,” Deakin concluded.

“In difficult times, people still like to treat themselves so businesses associated with UK tourism, takeaway outlets – even chocolate-making – are succeeding, despite the economic climate.”


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