According to the research, growth in analytics compensates for issues in partnership and timeliness.
According to NMG Consulting’s most recent report, difficult markets present both possibilities and problems for Asian reinsurance broking firms.
During these cycles, brokers’ services are often in high demand, allowing them to operate at full capacity. However, difficult markets put further strain on partnership and placement capabilities, with brokers frequently incurring criticism for circumstances beyond their control.
According to NMG Consulting, one year after the hard-market reset, Asian reinsurance brokers have generally gotten higher overall ratings from insurers. Notably, the largest franchises have reaped the most benefits.
However, the data showed a decrease in evaluations for “partnership approach” and “business ease and timeliness,” which are critical components of the client experience. This reduction could be attributed to broker resource restrictions or other unforeseen issues, particularly given that previous renewals were reportedly more orderly than expected.
NMG also notes an increase in ratings for brokers’ “data analytics & models,” indicating alignment with changing client expectations.
The present hard-market cycle puts extra emphasis on broking appointments, as clients may regard brokers as profiting disproportionately while reinsurance costs remain high. In light of these factors, reinsurance brokers are encouraged to improve their client service as they approach 2025.
NMG Consulting adds that the lower scores in “partnership” and “business ease & timeliness” are concerning, notwithstanding the fact that the baseline was altered by recent interruptions such as COVID-19.
Insurers in Asia continue to engage many reinsurance brokers, often three on average. Insurers offer brokers diverse roles based on each firm’s strengths, with a clear lead broker frequently taking the lead.
According to NMG Consulting’s data, brokers in lead roles have witnessed consistent improvements in partnership ratings, notably in 2024, indicating a targeted focus on these crucial partnerships. The top three franchisees account for over 80% of all lead appointments in the region, emphasising the importance of strong client relationships.
The report highlights problems for brokers in non-lead roles, especially since partnership remains a critical value driver that is independent of firm size. NMG Consulting notes that broker effectiveness in obtaining new lead accounts may become a significant difference, with brokers displaying varying levels of activity and emphasis in their new business initiatives.
As a result, brokers’ future performance in Asia may be dependent on their ability to go beyond existing customer connections and successfully acquire new lead appointments.
What are your thoughts on the story? Please leave your comments below.
