BVK surveys: sales shock in spring, slight decrease in summer

BVK President Michael H. Heinz

–

The first survey, which was carried out in April, showed a sales shock: of the 1,628 participants, two-thirds of the brokers complained of lost sales. On average, the decline was 38 percent. Insurance brokers were the second most affected with 39 percent, multiple agents the most severely with 43.3 percent, and exclusive brokers the lowest proportion with 37.8 percent.

According to the BVK, however, the second survey in August showed a somewhat milder picture with regard to the loss of sales: Two thirds (62 percent) of the 943 participants reported reduced sales. These averaged 20 percent.

All divisions were affected by the decline in sales, albeit to different degrees. Life insurance suffered the most, followed by SHUR and company pension schemes. In contrast, car insurance and health insurance recorded the lowest cancellations.

While in the first survey smaller brokerage firms tended to suffer greater losses, in the second survey the broker firms in particular reported the greatest losses, which were in the middle profit segment (80,000 to 120,000 euros / year).

“Dramatic decline” in personal conversations

According to the BVK, the corona broker surveys gave no indication that the pandemic, in conjunction with digitization, will lead to the mass death of brokers. Only 2.5 percent of the brokers surveyed are planning to exit the market or want to take early retirement.

“Our broker surveys very well reflect the restrictions on business activity caused by the corona pandemic for brokers and their sales development,” says BVK President Michael H. Heinz. “After all, personal conversations and meetings are only possible within a restrictive framework and have fallen by a dramatic 82 percent, as our studies have shown. But despite the massively expanded digital and telephone contact with customers, the direct customer approach could hardly be compensated. ” (kb)

Photo: BVK

– .