Opinion: Brokers evolve beyond distribution to take on industry-wide marketeer remit

Brokers are so much more than just a distribution channel in UK general insurance (UKGI).

Although this is their primary function, liaising with both underwriters and end clients, there are a number of secondary purposes where brokers can step up and support our sector to flourish.

According to Daniel Lloyd-John, chief executive at Manchester-based broker Broadway Insurance Partners, his business is also “a recruiter and developer of good people”, as well as “a marketing organisation” for UKGI.

“We are a recruiter and a developer of good people and that only works if we create an environment that is interesting and gives people the opportunity to progress,” he explained.

“At the same time, we’re only going to get these results if the insurance market continues to believe that we are a marketing organisation on [its] behalf. I don’t think brokers talk about that enough. We talk about being as detailed and technical and brilliant in the client environment as much as possible.”

This overarching sentiment is shared by Ajay Mistry, co-chair at the Insurance Cultural Awareness Network and a director of numerous brokerages. He confirmed that “brokers act as marketeers” and “are one of the strongest influences on how customers experience and perceive the insurance industry”.

He continued: “The reason we rarely describe brokers as marketeers is because the industry still tends to put everyone into quite defined roles – insurers create the products, brokers distribute them and marketing is seen as a separate function. In reality, those lines are much more blurred.

“Every conversation a broker has with a client is shaping how that customer views an insurer and the wider market.

“That has a significant impact on reputation. If a broker communicates insurance well, they can build trust, improve understanding and show customers the real value of having the right protection in place.”

A branding exercise?

A key beneficiary of brokers donning their marketeer hats is obviously insurers, with Mistry emphasising that underwriters “need to recognise that brokers are effectively carrying their brand into the marketplace” – with this task being more of a challenge if products are “overly complicated, service is poor or the proposition is difficult to explain”.

Michelle Taylor, broker distribution director at insurer Aviva, agreed that brokers’ secondary role as industry marketeers is one “that doesn’t get enough attention”.

She said: “Brokers are often the insurance industry’s most trusted voices because they have the closest relationships with their customers.

“Brokers aren’t there to market insurers, but they do help customers understand the value insurance brings. In areas such as underinsurance, resilience and emerging risks, those conversations are more important than ever.”

Ultimately, brokers are in a position to make or break success in UKGI by how they join the communication dots beyond the nuts and bolts of basic distribution, venturing into reputational waters with careful consideration of language and advice.

Although the perception of a classic ‘middleman’ can be somewhat negative, in an industry already permeated with detrimental connotations being shared by its customer base, any business that can help construct a positive sector front can only be a good thing.

Brokers are uniquely placed to understand both insurers and clients, meaning that marketing UKGI is often their cross to bear – dispelling myths, mitigating underinsurance and advocating for appropriate cover.

Mistry summed this up well: “Brokers [have] a huge amount of responsibility because they are often the ones explaining why cover matters, making complex risks easier to understand and demonstrating the value of insurance beyond just price.”

Multipronged marketing skills within broking businesses is no longer a ‘nice to have’ – it is imperative as part of futureproofing UKGI and dispersing reputational misnomers.