Innovation a top concern of brokers
Flaspöhler, part of NMG Consulting, conducts an annual, global survey of brokers and insurance executives to illustrate their competitive positioning and concerns. Here, we reveal the top challenges for brokers across EMEA.
As part of its most recent study, Flaspöhler | NMG Consulting asked reinsurance brokers across EMEA to provide their view of the ‘greatest challenges’ facing their industry (and their organisations) today.
Innovation emerged as the top concern, an answer likely prompted by the insurtech revolution the industry is grappling with. Many innovations have the potential to cut brokers out of the loop, perhaps explaining this concern.
Innovation emerged as the top concern, an answer likely prompted by the insurtech revolution the industry is grappling with. Many innovations have the potential to cut brokers out of the loop in some instances, perhaps explaining this concern.
Innovation is clearly top of mind for respondents but in addition, reinsurance brokers are experiencing margin reductions.
“Across EMEA, reinsurance brokers report similar environmental challenges as insurers, but overall, innovation is top of the list for reinsurance brokers,” said Rick Flaspöhler, partner and co-author of the research.
“The areas of focus included new solutions for clients, new product offerings (keeping pace with changing needs and demands), and the potential for new analytical models and data usage.
“In addition, reinsurance brokers are experiencing margin reductions due to declining premium-based revenues, and reductions in the current and potential client universe as a consequence of consolidation.
“As a result, they are also very concerned about excess capacity, the soft market, and pricing.”
The word cloud shown below provides a unique high-altitude perspective, that draws out common themes in an aesthetic which is easy to digest. The more often a word/phrase is used by respondents, the larger it appears in the cloud.
While word clouds can never provide the statistical accuracy of coded and counted responses, they can illustrate subtle differences between answers of similar but different responses, as well as provide helpful insights into the overall tone of responses.
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