Schemes management: Working towards a common goal

In principle, schemes represent a win-win situation for the insurer and broker, with the intermediary receiving a bespoke product that meets the particular needs of a target market; while the underwriters gets a book of business that is potentially highly profitable.

However, there are some circumstances where a scheme is unattractive to an insurer. If broker and insurer are not aligned on profit objectives, then schemes cannot be successful in the long term.

This article studies how insurers and brokers can collaborate effectively to manage schemes and achieve their objectives.