UAE: Insurers highlight areas for improvement in dealings with brokers
Source: Middle East Insurance Review | Nov 2017
United Arab Emirates Brokers
Loading by brokers, poor support in premium collection and weak product and industry knowledge have been cited as the top concerns of insurers when dealing with brokers in the UAE.
A recent survey was conducted to understand the evolving role of insurance brokers and expectations going forward, identifies several areas for improvement. The survey was conducted between 20 and 26 September 2017, and received responses from 20 insurers (response rate: 34%) out of 58 insurers whose views were solicited, said Insurance Monitor.
Insurers expressed concerns over operational areas and the need for further regulatory controls. While 38.4% of the respondents concur that the 2013 broker regulations have been beneficial to the insurance industry, a similar proportion of respondents argue that further controls are required to address what were found to be the key pressing issues: loading by brokers, poor support in premium collection and weak product and industry knowledge.
Insurers expressed the least satisfaction in terms of relationship and trust. Low satisfaction levels are also validated by a cross finding that 69.2% of insurers surveyed discontinued services with brokers in the last three years. Poor servicing by broker was the main reason for discontinuation, followed by unethical or unprofessional practices.
The survey also finds that insurers’ expectations of brokers reflect a shift from the “price-discoverer middle-man” role to a “partnership model” that can draw on several value-added services from brokers. M