Which of the following is a method of segmentation used by brokers?

Segmentation is a crucial practice used by brokers to tailor their services and approaches to different categories of clients or risks. The method of segmentation by client size is particularly relevant in the insurance broking field because it helps brokers understand the specific needs and characteristics that vary across different-sized clients.

Larger clients often have more complex insurance needs and may require bespoke policies, extensive risk management services, and more direct engagement with underwriters, while smaller clients might look for more standardized products and simpler service interactions. By segmenting based on client size, brokers can design their offerings to better align with the resources, expectations, and requirements of different client categories, ultimately leading to improved service delivery and client satisfaction.

Other segmentation methods, such as by risk type or regional influence, do exist and can be useful in certain contexts, but client size creates a foundational approach that informs the broker’s strategy on a broader scale. Additionally, technology adaptation is more a factor of how a broker conducts business rather than a primary method of segmentation in the context of categorizing clients.