Speaking at the London Mortgage Business Expo, Andy Peters, distribution director at Bright Grey, said while companies that had embraced technology had reaped the rewards of increased business volumes, portals were not giving brokers the best deal.
He admitted insurance companies were working to improve the situation but the current method was flawed and needed addressing.
Peters said: “Portals drive everything to the cost point. Everything is compared in cost and does not include all the benefits to give the true value of the product. This needs to be changed.”
Peters admitted providers had been repeatedly cutting the cost of policies in recent months to stimulate business, but this would have to change as there was only so much that could be done. He believed if providers kept cutting costs without improving sales, it could put the firms in jeopardy and clients would suffer.
Jon Finley, business development manager at The Exchange, believed portals should be used as part of a wider sales process.
“We see ourselves as part of the process and not the whole process. We are well placed to compare on price and give the broker an idea of what the best option would be for their client in terms of cost. However, when it comes product complexities, it’s up to the broker to narrow down the options and make sure the client gets the right product.”
