LV= Research Reveals Brokers Views on Regional Offices

According to new LV= research amongst brokers, insurers’ regional offices provide a significantly higher quality of service and are vital to a successful relationship.

According to the research, 64% of regional brokers and 60% of provincial brokers believe that insurers’ regional offices provide the best quality of service compared to just one out of ten (12%) brokers saying head offices are preferable. Offshore call centres were judged to provide the worst service standard (0.4%).

Over six in ten (62%) brokers said they get a more personalised service from regional networks and the same number said they believe that insurers with regional offices have a better understanding of their business (57%).

The importance of regional underwriting rises with the distance from London, with 74% of all brokers in the North of England saying they get a better service from local contacts and 80% of brokers in Scotland saying they get quicker decisions from regional offices.

According to brokers, regional offices have more affinity to them and have a better understanding of the risks they are underwriting. Over half of all brokers (54%) said they would welcome insurance companies increasing their regional presence.

Mike Crane, Commercial Director of LV=’s broker business, said: “This research backs up our belief that a regional network is key to providing brokers with a first rate level of service. Brokers clearly believe local underwriters with knowledge of the regional market are best placed to handle their business.”

“While other insurers close their regional offices and head back towards the capital, LV= has spent the last 18 months setting up its network and we now have nine regional hubs with total underwriting responsibility for their area. We have recruited some really experienced industry players to run these offices and we are firmly committed to this network.”

Despite brokers saying regional networks are important, many believe that they are not a priority for insurers. 40% of brokers said that many insurers don’t care about regional offices, two-thirds (63%) said they are under-resourced and almost three-quarters (70%) said that regional offices are in decline. This problem is particularly felt by small brokers with 90% saying that their regional network of contacts is in decline.

The LV= broker branch network predominantly sells Commercial Combined Business insurance but also sells a range of personal lines and commercial products including Car and Fleet Insurance plus Commercial Package Insurance for Shop Owners, Property Owners and Offices & Surgeries.

The LV= broker business has branches in Leeds, Croydon, Glasgow, Sheffield, Bristol, Bournemouth, Manchester, Birmingham and Maidstone.

Notes to editor:

LV=’s study of a representative sample of 250 UK insurance brokers was conducted during January by independent researcher FWD Research. A summary of data from the research is shown below.

Q1. Which of these, if any, do you believe give you a better level of service?

Q2. Which of the following, if any, do you believe are the benefits offered by insurers' regional offices?

Q3. Insurers do not really care about regional offices

Q4. Regional offices are under resourced

Q5. Regional offices are in decline

LV=

LV= Broker is part of the LV= group of companies. LV= is a trademark of Liverpool Victoria Friendly Society Limited (LVFS) and LV= is a trading style of the Liverpool Victoria group of companies.

LV= employs over 3,700 people, serves more than 2.5 million customers and members, and manages more than £7.7 billion on their behalf. We are the UK's largest friendly society and a leading mutual financial services provider.

About ABC Insurance

ABC Insurance is part of LV='s broker insurance division within its general insurance operation. ABC underwrites both personal lines and commercial insurance for SMEs exclusively through brokers.