July 2008 – The scale of [independent] broker website presence and online trading has scope for growth according to the findings of the new MMA Broker Trading & Technology Monitor (Monitor) from intermediary only insurer, MMA Insurance plc (MMA).

The survey of over 470 brokers across the UK shows that developing a website presence for their businesses was a priority. A third of the brokers in the survey did not have a website. When asked whether they planned to launch a website in the next 12 months 55% said they had no plans to do so. Of that number, there was a group of around 20% who remain ‘webphobic’ brokers with no plans at all for a web presence for their business.

When asked about the functionality of websites just under 30% currently offer some form of online trading, this ranged from quick quote and call-back facilities to detailed quote and buy online options. Just over 50% use their site as an online brochure but half of those are planning to introduce some form of online trading in the next 12 months.

The use of software houses and technology platforms was a prominent feature with the majority of brokers using two providers. While i-market remains a platform supported by brokers - 65% of brokers surveyed were members – fewer than 50% do not transact business through the platform. The Role of aggregator sites is limited with only 6% of brokers subscribing to them.

Commenting on the results of the first MMA Broker Trading & Technology Monitor, Derek Plummer, Commercial Director of MMA, said: “The scale of online trading identified by our Monitor shows that independent brokers have much greater scope to use this technology to strengthen and grow their businesses.

“The fact that around 70% of businesses currently do not trade with customers via their website shows the potential there is to provide clients with a responsive and efficient method of trading.”

Commenting on the level of web presence, Plummer commented: “It is hard to see how any business can truly thrive and optimise its growth potential without a web presence. The figure of nearly 20% who have no plans for a website is surprising and certainly those brokers should review that decision carefully.”