Brokers missing revenue opportunities

Brokers are potentially missing out on key revenue opportunities from ancillary insurance lines such as motor breakdown cover.

This is according to research conducted by Astrenska, the underwriting division for the Collinson Group.

The research revealed a healthy appetite among consumers for products that brokers might traditionally view as ‘non-core’ - with many rating certain product lines as highly valuable.

In the survey of over 1,000 respondents more than a third (37 percent and 38 percent respectively) cited motor breakdown cover as either ‘essential’ or ‘desirable’ with 22 percent and 43 percent declaring the same regarding home emergency cover.

Astrenska suggested that brokers raise the profile of these products beyond the point-of-sale or renewal stages for the core products.

“Introducing customers to ancillary products at these times is the traditional method; however other opportunities exist such as during a policy amendment, or a discussion about a claim. This approach to product introduction can encourage higher levels of engagement, build trust and ultimately encourage more loyal customer behaviour,” said the underwriting division.

Just under half of consumers questioned said they would consider buying multiple cover from the same provider to gain value for money.

Astrenska said it believes that an increased focus on ancillary products can help brokers mitigate the risks of their customers going elsewhere for their lead insurances and presents additional revenue opportunities

Gareth Absalom, group head of Astrenska said: “Our research shows that many customers place high value on a number of the so-called ‘non-core’ insurance products. By recognising the commercial value that ancillary products can bring, brokers can grow revenue while increasing their customer engagement to encourage more loyal customer relationships. They can also achieve better sales efficiencies as the revenue per customer would rise without large additional costs of sale.”