A Functional Approach

Fundamental changes in the market environment force insurance intermediaries to redefine their roles. This article focuses on the future functions of brokers, which are analyzed from a functional as well as a customer-oriented perspective. To cope with the limitations of current intermediation research, the customer-value approach is applied as an alternative framework. This approach suggests that brokers must create benefit and customer value to be successful in the future. After a review of existing literature concerning insurance intermediation, this article presents the results of 20 in-depth interviews with leading managers of multinational companies from different industries, representing important current and potential customers of insurance brokers. The findings highlight four main functions insurance brokers are expected to fulfil for their customers: supplier, transformer, partner, and problem solver. The article concludes with a discussion of the growing demand for innovative and individualized services and further essential requirements for brokers that will enable them to meet the future needs of their clients in the most optimal manner.