Should I keep it local?  – The benefits of choosing a local insurance broker vs large corporation

In the current insurance broker market, it is becoming harder and harder to find a truly independent local insurance broker. More and more small brokers are being acquired into larger corporate groups leaving few true independents to choose from. So, what are the benefits of going local for your insurance broker? What do you get out of it?

The personal touch

Inevitably, if your broker is nearer by, you are more likely to encounter them in person. Though a lot of the larger brokerages will have a good national spread, often this model is reflected in ‘hubs’, where their regional focus is based in one large city in the area. The brokers based there will then service a wide range of clients across big geography. For example, you may have a ‘Northern’ region where all the brokers are based in an office in Manchester, which could be hours away from where you are based!

If you value the in-person approach, you are much more likely to get this from a smaller, locally-based broker, who you can meet more easily. From a networking perspective, their contacts are also usually going to reflect the immediate local area much more closely and strongly.

Local expertise

Is a local more likely to understand your industry and how it works, without you having to explain it all to them? Is a local broker who can physically come visit, more likely to understand your highland whiskey distilling business (for example) than someone based hundreds of miles away who you only have spoken to over the phone?

Similarly, a local broker is much more likely to understand your area’s general ‘lay of the land’ and any nuances specific to your region, including any local industry specialities.

Are there areas that are going to be an issue from an insurance perspective that they will know instinctively? If you had a property in a well-known flood area, the local broker is more likely to have this knowledge innately, instantly putting them on the front foot when they are then interacting with insurers on your behalf.

Your pulling power

Smaller businesses will mean smaller budgets and lower employee numbers. Very simply this makes each individual policy they place more economically significant to their business! This can give you more bargaining power and generally make your policy more of a priority when compared to some larger brokerages.

You are also more likely to gain direct access to a decision-maker in a smaller organisation. If their team is much smaller, you can often more easily locate the senior person providing the final sign-off on any policy. You may even be speaking directly with an actual owner or even the founder of the brokerage itself! This can expedite the process for you, knowing there are fewer internal loopholes and convoluted management sign-offs for the broker to jump through to get your insurance needs sorted.

Doing your bit for local business

As with any smaller business, your custom has a positive impact on the local economy, providing direct income to a community and supporting a local employer. Larger brokers often understandably revolve a lot of operations around the world-leading international market in London and are usually part of a much larger group with a headquarters elsewhere.  By appointing a local broker, you can know the money you are having to pay towards your insurance is more directly going towards the local community.

Of course, there are benefits in going down the route of a larger corporate insurance broker too, ultimately the decision lies with you! If you think you would value the service only a local broker can provide, then start your search for your new insurance broker quickly and easily with PomeloScan here!