Insurance brokers should recognise the reputational risks they face and tackle these issues head on, according to the Society of Insurance Broking (SIB).
The latest SIB report identifies four areas of reputational risk:
1. Diversity and inclusion: The profession’s historic lack of diversity and inclusion has impacted perception of its ability to address the needs of society.
2. Qualification requirements: The lack of mandatory qualification requirements in the insurance broking sector is identified as a reputational risk.
3. Recommending unrated insurers: Brokers should be reticent to recommend an insurer without a financial strength rating from a recognised agency.
4. Commission-based renumeration: The way insurance brokers get paid may be a source of distrust for consumers, who view commission-based work as a possible conflict of interests.
To read the report and its recommendations, visit: www.sib.org.uk