The image, on television advertisements, of a loud red telephone on wheels has made a considerable impact on insurance consumers. It has made a similarly significant, but less welcomed, impact on insurance brokers and other intermediaries. The organisation behind the red phone, Direct Line Insurance (a subsidiary of The Royal Bank of Scotland) has led the way for general insurance companies to sell their products directly to the policyholder, thus completely by-passing the intermediary network. The resultant saving in commission has enabled these direct writers, of which there are now many although none the size of Direct Line, to adopt a low price strategy which has been very successful in securing market share. What then of the intermediaries - perhaps as many as 20,000 businesses - who used to represent the principal means by which motorists and householders negotiated their insurance protection? In the personal motor market, intermediaries have already seen their market share considerably eroded and a similar threat is hanging over the household market - apparently waiting only for the direct insurers to launch a concerted initiative. The paper demonstrates that the personal general insurance intermediary market is in decline. It reviews what has already been written on the subject of businesses in a declining market and discusses the question of whether established theories relating to strategic behaviour in such circumstances can validly be applied to these intermediaries. The paper starts with an examination of the reasons for decline and the characteristics that organisations display in these circumstances. Existing literature is considered that sets out appropriate strategies and the factors which affect the choice of strategy in decline. The paper goes on to discuss the relevance and suitability of these strategies for the insurance intermediary.