Broking Giant Set To Alienate Small Businesses?

Towergate have announced plans to axe 750 jobs and integrate £200 million of annual premium into a call centre model, according to the Insurance Times.


Currently, Towergate's SME clients--who will pay up to £5000 in premium--will deal with one of their 85 offices across the country. But from this summer onwards, those aforementioned policyholders will be redirected to a call centre in Manchester.

It's a decision that has sparked much debate within the insurance sector, and some feel that whilst the move will see Towergate's premiums eventually depreciate, the broking juggernaut do risk alienating a large portion of their client base with the impersonal, diluted service that call centres can often provide.
For those clients who prefer a personal, familiar service news of this move will certainly come as something of a shock. As a consolidator, Towergate have purchased a host of local, independent brokers with clients who are used to a personal touch.

The Monday to Friday, 9-to-5 modus operandi of many of these call centres mean that policyholders may have to endure a more restrictive service. Especially in contrast to a local broker, who can offer a considerably more rounded and personal approach.

It's clearly a gamble, but is it one that will pay off? Are you a Towergate client concerned by this decision?
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