Around two thirds of insurance brokers have highlighted price comparison sites as their greatest challenge, according to a new survey.
A total of 62% also saw squeezed consumer incomes as a major issue, the research by MAPFRE ASSISTANCE found.
However, 78% of insurance brokers said they were confident about business growth prospects in the next 12 months, with 27% ‘very confident'.
Around 68% of those polled said working more closely with product providers will be crucial for insurance brokers as they look to boost profitability. A further 50% said streamlining administration and back-office functions through greater use of technology should be core.
In addition, 49% believe insurance brokers should invest more in marketing programmes while 38% said consolidation with other insurance brokers would be key.
Charles Coburn, head of sales (Finance and Insurance) at MAPFRE ASSISTANCE, said: "Increasing the range of services offered, reducing costs and investing in new technology are all ways that brokers are looking to boost profitability as they look to counter the threat of price comparison sites.
"However the real USP for brokers remains their ability to develop a portfolio of insurance products for consumers which offer value and quality of cover. As they look to build their businesses out of the recession, it seems that brokers are more willing than ever to adapt to their operating environment and to cement their crucial role in the insurance market."
