UK motor insurance distribution: face to face contact with brokers in decline

Face-to-face contact to arrange motor cover via a broker has fallen sharply in the UK, from 42% of transactions in 1999 to 28% in 2005. This is primarily due to consumer recognition of quicker and more convenient alternatives. This trend of diminishing face-to face contact is a cause for concern for high street brokers, as they rely on personal visits for their business. Decreasing customer footfall is a key reason behind the fall in market share suffered by high-street brokers; use of the telephone has decreased marginally, probably due to a substitution trend in favor of the Internet in the motor sector since 2003.

Source: Datamonitor, "The Future Role of Brokers in UK Personal Lines Insurance 2005" (DMFS1739)

Source: Datamonitor, "The Future Role of Brokers in UK Personal Lines Insurance 2005" (DMFS1739)