Insurance brokers lack confidence in new business

2010-11-02 09:20

Insurance brokers were continuing to lose confidence in their prospects of getting new business in the next year, indicating that consumers were still struggling financially, a survey released today showed.

“The drop in confidence levels in prospects for the industry and new business suggests that brokers are not expecting a significant pick-up in consumer spending, despite the perception that economic conditions are improving,” said Jonjon Smit, sales director of CIB Insurance Solutions.

The CIB Broker Confidence Index Survey, which measures the confidence levels of insurance brokers on a number of issues, found that in the second quarter of this year, 75% of brokers were confident in their ability to attain new business over the next 12 months.

This was down from 77% in the first quarter of this year and 79% in the fourth quarter of last year.

Brokers’ confidence in an improvement in business conditions for the local insurance industry over the next 12 months fell marginally to 66% in the second quarter of this year from 67% in the first quarter.

Their confidence in the outlook for the economy and business conditions over the next 12 months remained unchanged at 65%.

They were, however, marginally more confident about keeping their existing customers, with 77% confident in their ability to retain existing clients, up from 74% in the first quarter.

“Most brokers understand that in the current economic conditions, it is far easier to hang on to existing customers than to acquire new business,” said Smit. “This is good news for consumers, as it should result in increased service from brokers.”

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