Wealthy motorists get a better car insurance deal through brokers sites rather than going direct to insurers, according to new research.
Findings from independent financial monitor Defaqto show that despite a drop in the availability of comprehensive car insurance deals from brokers, high net worth drivers are still better off shopping through an intermediary.
The comprehensive car insurance market has surged by 40 per cent since 2004, when 150 policies were available, compared with 211 now.
But direct providers have tightened their grip on the top end of the market by slowly changing the split from 60:40 in their favour against brokers to 67:33.
Drilling down in to the data shows that 90 per cent of deal for high net worth motorists are still available through brokers.
Defaqto advises high net worth car insurance customers to stick with brokers – ‘high net worth’ is defined as a client with assets of £600,000 or more (US$1 million).
Mike Powell, Defaqto’s general insurance analyst, said: “The last few years have seen significant growth in the number of comprehensive motor insurance policies on the market. Although we have seen the volume of both direct and broker only products increase, the number of direct products available has grown much more rapidly.
“However, brokers are still king when it comes to the high net worth end of the market and, as a result, there are still tangible opportunities for intermediaries in the motor insurance sector.”
Defaqto argues brokers should focus on providing bespoke service to high net worth clients as insurers target a broader range of customers.
“The key challenge is how brokers convert these opportunities for the benefit of their business. Essentially, they need to play to their core strength: giving advice,” said Powell.
“At the heart of giving advice should be a focus on identifying clients’ needs and then meeting them with products that offer the features and benefits that they need. This is particularly important in the high net worth end of the market, where a more bespoke offering is required.”