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Insurance brokers face tougher retention pressure as pricing softens
Trucordia CEO Felix Morgan said weak broker responsiveness is a top complaint from prospective clients, and that competition is shifting from price to value-added service.
Insurance brokers are facing mounting pressure to retain clients as a softer pricing environment reduces premium-driven revenue growth and increases competitive efforts to win existing accounts, according to Insurance Business.
Trucordia CEO Felix Morgan said the competitive landscape is especially challenging in California and across the US as rivals approach producers with cheaper alternatives. He added that weak client engagement shows up during prospective calls, where the most common complaint is that a current broker will not return phone calls.
Morgan said competing on price has become harder in a soft market, turning growth strategy toward demonstrating value-add and acting as a trusted advisor. He said the focus increasingly depends on both protecting the existing book while selling more business.
Trucordia is responding by adjusting its sales process, market access, and products for producers, supported by leadership platforms tied to individual office regions. The CEO also pointed to retention as a renewal battleground as rates ease in parts of the commercial insurance market.