I recently learned some ‘insights’ about insurance brokers…
This is not investment advice. Please read the disclaimer. I might own discussed stock(s) currently or at a later time. I might transact in any securities at any time.
For example Marsh* has a portal in which corporate clients can watch their global coverage and filter for countries/regions, insurance type and other things. I guess most others have similar solutions. This is quite helpful in practice, since i) corporate insurance is often located within corporate treasury departments — sometimes a one or two-(wo)men show — which often have a broad set of responsibilities. The broad set of responsibilities is also a strong reason for hte use of brokers which can advise on specific products, needs and insurance markets. The advice itself can be useful but of course — in general — the department becomes less attackable using outside advice, if, frequently checked against other venues.
In a former job at a bank, we managed ‘depot a’ investments of other banks. This is money that is not lend out as loans, and thus is invested, ie. into bonds. Most trades were facilited through our capitla markets/trading department but of course, some customers made use of other services. But, since most of them used our tools as well, they had a need to inform us so that we can manually import their other trades. This can provide valuable insights (ie competitors offering better service/prices) and/or hinder customers to buy from competitors since they might want to mitigate or limit such maybe unpleasant situations… Anyway, I think it is a great situation to have such tools implemented with customers, making hteir life easier and strengthening customer relationships (ie a little moat, or rather one of many puzzle pieces).
(* part of Marsh McLennon – MMC US)
Countries often have regulations that requires or at least strongly favors to buy insurance protection from a local insurance company, in which case one pays insurance tax besides the insurance premia, obviously. This can result in many contracts with many differnet companies vs a few policies with a bunch of global insurance companies.