Are brokers meeting clients’ service expectations in 2024?

Are brokers meeting clients’ service expectations in 2024? | Insurance Business Canada

Insurance News

Are brokers meeting clients’ service expectations in 2024?

New report highlights how clients view their brokers

Insurance News

By
Kenneth Araullo

Insurtech provider Zywave has released the results from its 2024 Broker Services Survey, which offers insights from employers across the United States regarding their primary business challenges and expectations of insurance brokers.

According to the survey, nearly 92% of employers believe their business outlook for 2024 is either comparable to or better than the previous year. Additionally, close to 86% of respondents reported satisfaction with the services provided by their insurance brokers.

Patrick Noonan (pictured above), Zywave’s vice president of content development, noted that while consumers, including insurance buyers, are demanding, the majority of respondents are satisfied with their brokers’ services.

He also emphasised the importance of brokers remaining attuned to their clients’ evolving challenges and needs to maintain strong relationships and client retention.

The findings from the 2024 survey align with trends from previous years, indicating that employee attraction and retention, compliance, and technology remain critical areas of focus for employers.

Nearly 83% of respondents expressed a desire for consistent communication with their brokers, with weekly or monthly updates on specific insurance topics, highlighting the ongoing expectation for prompt and effective service.

In 2024, employers placed the highest value on client service and a broker’s expertise in their professional relationships. When selecting a broker, 57% of employers prioritised the ability to provide prompt and effective service, along with timely responses to their questions.

Additionally, 53% of employers sought brokers who act as trusted advisers rather than merely salespeople. Other important criteria included the ability to negotiate renewals, valued by 48% of respondents, and the provision of compliance resources, which 33% of employers considered significant.

The survey also asked employers to identify their top concerns related to insurance. Financial considerations and policy coverage emerged as leading issues in both employee benefits and commercial insurance.

Employers cited mitigating health care costs, offering a competitive benefits package, and attracting and retaining employees as their primary challengses in the employee benefits area. In terms of commercial insurance, understanding the appropriate level of insurance coverage, affording insurance, and implementing risk management and employee safety strategies, policies, and procedures were identified as the main concerns.

Noonan remarked that the survey responses suggest employers continue to face many of the same challenges as in previous years, with the current insurance market conditions increasing pressure on brokers to deliver a higher level of industry knowledge and expertise.

Zywave has conducted the Broker Services Survey for over a decade, aiming to provide brokers with valuable insights to help them prioritise their services and address their clients’ most pressing business challenges.

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