| Journal: TWUK | Section: |
| Title: | Issue Date: 17/04/00 |
| Author: | Page Number: 37 |
| Copyright: Other |
King tells trade to be aware of competition
TRAVEL agents will continue to profit from travel insurance sales but they will have to work harder for their money, Euclidian Risk Management Services director Steve King has predicted.He warned that agents should not underestimate the threat from direct sell, banks and building societies as well as the growing threat from emerging technology such as the Internet.
But he added that agents will continue to be the main outlet for travel insurance as long as they continue to sell holidays.
Speaking at the Travel Insurance Symposium at the RAC Club in Pall Mall, London, King said: “A lot has been said about the growth of new distribution channels for selling travel insurance but 70%-75% of policies are still sold by travel agents at the same time that they sell a holiday.
“I see no reason for that to change. Travel agents’ core business is selling holidays. If they concentrate on that business and do it well, fending off the threat of the Internet, they will not lose travel insurance sales because the majority of people will not shop around if they believe they are getting good service and value for money.”
King forecast that there will be a shake-up of the intermediary market, with acquisitions and takeovers by insurers swallowing up some of the smaller players.
Others, he said, would chase profit from new emerging methods of distribution in the industry.
King: predicts a shake-up of the intermediary market