Aviva has launched its own internal extranet for brokers to get cheaper prices by ‘removing software house costs’.
Well, good luck to them – nothing wrong with that. Apart from they now need their own developers to maintain it.
But, the underlying issue is software house costs should be miniscule. If they are not then YOUR’E USING THE WRONG SOFTWARE!
If brokers want the cheaper rates but still through a software house, then you just need to look at alternative software houses! There are other providers outside of the big three who monopolise the market currently that offer the same, if not better services, at a fraction of the cost – we’re talking pin numbers rather than telephone numbers. Insurers and brokers just need to look beyond their own back door for alternative ways of being competitive whilst still giving brokers, and customers, what they want.
Let’s look at personal lines – home, van and motor for example. Let’s assume a typical broker places 2000 polices a month. ‘Pin number’ software providers might add something like £1 to the cost of a policy. If £1 is going to make a difference to how much business you write, there’s something else wrong. Suppose you write 10% more business, then the cost falls to about 80p. You pay your card providers more than that.
Think I’m Wrong?
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