Are brokers ready for the direct SME threat?

This month's Power Hour panellists discuss whether brokers will be able to flourish, or even survive, in light of the threat they are facing from firms writing small-enterprise policies directly. Will it mean cutting prices further - at the expense of quality?

Given the recent announcements from Lloyds TSB and RBS, is brokers' share of the SME market under increased threat?

Geoff: If brokers continue to try to differentiate themselves on price only, then they certainly are under threat from direct writers.

Stuart: I think we need to draw parallels with the private motor business.

A lot of it has gone direct, but still the core of private motor business is held with the broker. While there is a direct threat on the smaller business side - and I agree it