“There has been a trend of late by certain GI providers to scale back on their BDM resource. It’s not for us to speculate on why this might be but it’s a concerning trend and not one we would subscribe to.
“BDMs should be there to develop the relationship with brokers but are also there to be a source of immense market knowledge and contacts for them to tap into to help grow their businesses in ways that don’t simply relate to GI sales figures.
“Many businesses view the BDM sales function purely as bringing business in through the door but this point of view is seriously limiting the potential benefit to be gained from a BDM. Having the right products to attract new business is meaningless if your business fails to deliver on service.
“The word “service” can sometimes be overused in the commercial world and the meaning often gets lost.
“What does service actually mean? Surely it means different things to different people depending on their priorities and needs, so what does it really mean for brokers and are they getting it? Do brokers know what good service should really look like and what they should expect to be getting from their supplier BDMs?
“In 2009 we conducted a survey amongst 2000 brokers in the UK that ranked service as the most important reason for working with different insurance providers.
“Because 90 percent of brokers chose service as critically important, this year we decided to drill down further and find out what aspects of service matter most to brokers.
“Out of those who responded to the survey this year speed of response mattered most with 72% of respondents. Some 43% named accuracy and speed of commissions paid as the most important attribute, and 32% selected IT support.
“Interestingly, of the attributes cited as ‘not important’ for service, local BDM support was named most often at 15%.
“Perhaps those who don’t view it as important don’t receive good service from their BDM and so don’t know what they are missing.
“Most brokers running their own business tend to operate in a vacuum, too busy working in the business to work on the business.
“Consequently they don’t get the opportunity to network with their peer group and find out what is working and what isn’t, or share best practice as well as tips and ideas to help them maximise their business.
“This is where a good BDM can help. A BDM will see many firms a week and subsequently will become a mine of useful ideas and contacts as well as a trouble-shooter.
“They should understand the broker’s business using an arsenal of tools at their disposal from a decent fact-find through to a list of useful business ideas and contacts as well as tips and work-arounds to maximise new business.
“They should make it their job to share ideas and information gained on their travels because the more successful the broker is the more business that BDM is likely to see.
“Instead the BDM is often seen as an inconvenient distraction, simply making up their numbers by calling in for a coffee. After a BDM leaves, if the broker is left wondering about the reason for the meeting then that BDM is clearly wasting the broker’s time.
“A good BDM will leave the broker with some new ideas and maybe some contact points as well as food for thought, adding value to an otherwise hectic day so the broker can consider their business and how best to maximise their resource.
“How can a BDM that does not show an interest in the broker’s business help them develop? After all, can you imagine trying to offer advice on the right type of mortgage for your client without completing some form of fact-find?”
