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Customer experience is firmly in the insurance spotlight as the first anniversary of the Consumer Duty rules approaches and organisations across the sector take stock of their impact.

Data released earlier this month by the Chartered Insurance Institute (CII) indicates a growing divide between consumer expectations and their experience with insurers, a gap at its widest since the CII launched its Public Trust Index in 2029. The index also noted the ongoing dip in consumer confidence in insurers, with respondents highlighting how insurers could improve in handling claims professionally, fairly and efficiently. This was further cemented by the findings of the consumer advocacy group Which?, raising concerns about how insurance claims are being handled by providers.

Harnessing the power of broker feedback

The challenge at hand is clear – insurers need to put the right foundations in place on which to create improved customer experience strategies. But what do those foundations look like? Drawing on the CII’s research, it seems the answer is to be found in the insurance broking community, given that professional brokers were found to outperform price comparison websites, banks, building societies and insurers when it comes to building customer loyalty and confidence.

No customer experience strategy can afford not to base itself on the feedback of the brokers who have their ear to the ground on how to deliver the best possible outcomes for insureds – so what do brokers have to say?

High-quality products and ease of doing business

Front of mind for the broking community today is the demand for high-quality, accessible insurance products. Brokers want the confidence to know that when they recommend a policy for their clients, they’re working with tested and assured, highly rated products and solutions that will deliver at the point of claim.

Closely linked to that is the demand for increased ease of doing business. As to how insurers can meet that demand, Rob Fairs, product and channel management director at RSA, noted that two core components require addressing – reducing friction and creating accessible communication channels. Looking at RSA’s e-trade platform, he noted that the insurer has made significant investments to create meaningful, iterative changes to the platform to create a clear underwriting strategy.

“What that means is driving less friction in our business and enabling brokers to spend more time with their customers actually adding value as opposed to administration,” he said. “In our market, we have over 1.5 million inquiries every year. And therefore, when something refers, as a business, we want to be very targeted about that so that we’re able to win it.

“That leads on to the second part around ease of business, which is when we do have referrals and there’s contact between us and our brokers, we have to be on our game in order to drive outperformance in terms of customer experience. And we recognised the need to do that from our broker feedback.”

There are numerous ways an insurer can look to drive that outperformance – including increasing its number of underwriters, simplifying communication channels and building out individual product teams, backed by underwriting licenses. By increasing these underwriting licenses, you can ensure that when a broker speaks to an underwriter, they have immediate access to expertise and can expect a first-time resolution.

Pricing, data and strong relationships

Particularly amid the current economic environment, pricing remains a significant consideration for brokers – and whether the proposition on offer works as a whole for the insured. 

At the core of getting pricing right is data, as it’s only through the rigorous use of high-quality data that you can ensure you’re delivering the best possible coverage at the best possible price. “As you start to increasingly focus on driving the best possible outcomes for customers, you see that you have to have data at the heart of what you do,” Fairs said. “Data is key to driving successful business models, both for brokers and insurers. And I really feel there’s a market opportunity for us to differentiate ourselves by enhancing the data we use to make data-lead decisions to drive business outcomes.”

Relationships are the heart of how the insurance industry operates, and to keeping those front-and-centre means insurers can’t afford to take a ‘once and done’ approach to seeking out broker feedback. It is only by engaging with brokers, and getting their insights into what’s working and not working in terms of product, pricing and consumer confidence in digital channels, that insurers can put those insights into meaningful action. 

For Tovah Grosscurth, commercial lines digital director responsible for RSA’s SME and eTrade business, talking to brokers on the ground has given her confidence that the market is moving in the right direction.

Brokers are a great source of feedback, because they’re vocal about where they want to see improvements, she said, but also on where they have seen improvements. Genuine collaboration is what’s required to move the dial on customer experience in insurance and also to make sure that companies don’t become too internally focused when they’re looking to deliver a transformation strategy. “It’s about getting the balance right,” she said.

The Clear Group (Clear) has announced its acquisition of Maynard Milton Insurance Services LLP’s (Maynard Milton) book and assets.

Founded over three decades ago, Maynard Milton operates as a £4.9 million gross written premium broker in Southend-on-Sea, Essex. The firm is recognised for its strong position in the local market, particularly in the fleet and property insurance sectors.

The Clear Group acquires Maynard Milton’s book and assets

Post-acquisition, the entire team from Maynard Milton, including partners Martin Maynard and Kevin Milton, will integrate into the Clear Group.

This strategic move aims to bolster the group’s presence in the region, complementing its current operations in Shoeburyness.

Commenting on the deal, Mike Edgeley (pictured), group CEO of the Clear Group, highlighted Maynard Milton’s consistent growth and profitability over the years.

“We are delighted to welcome the Maynard Milton team to Clear. This is a well-run and profitable business which has a track record of delivering year-on-year growth. It’s another example of how Clear is able to invest in regional brokers while adding scale and expertise to our client proposition,” he said.

Kevin Milton, co-founder of Maynard Milton Insurance Services LLP, said the Clear Group aligns with their values, particularly placing clients at the heart of the business.

“Our team has worked hard to build a successful brokerage, so it was important that we found the right home to serve our clients moving forward. In [the] Clear Group, we saw a business which shared our values for placing the client at the heart of its proposition. We are now looking forward to working closely with our new colleagues at Clear to continue to provide our clients with the best possible service and products,” he said.

This acquisition is part of the Clear Group’s broader strategy to expand its footprint and capabilities in the UK insurance market. It follows the group’s acquisition of the book and assets of Rycroft Associates LLP (Rycroft Associates), which includes Inspire Credit Management Limited (Inspire Credit Management).

The deal, announced last month, aims to enhance the Clear Group’s commercial solutions as insolvencies in the UK hit a 30-year high.

The insurance industry is no stranger to conversations about the growing talent gap impacting the financial services sector – and the challenge to recruit and retain top-tier talent, particularly as technological advancements reshape what it means to work. There’s a range of factors underpinning this gap including competition with other industries, shifting demographics creating an ageing workforce, and limited awareness of what it means to work in insurance.

The perception issues surrounding the industry are of particular concern, as many people have a limited understanding of what insurance actually does and the diverse career opportunities a career in insurance can provide. The work of industry associations to provide education and outreach to schools and colleges is moving the dial, as recently seen by the successful return of the London Market Group’s ‘Futures Academy‘, but what can individual insurance companies do to secure a sustainable talent pipeline?

Changing perspectives on insurance careers

The scale of the challenge is thrown into relief by how few people working in the market actively chose a career in insurance. Offering her own experience as an example, Nikki Lister, head of SME trading at Zurich in the UK, noted that she started her two-decade career on the phones at one of Zurich’s contact centres. “A lot of people, me included, tend to have stumbled into insurance and realised what an amazing career it can be,” she said.

At the time, she was taking a gap year and planning to take up a place at university to become a teacher, Lidster said, but what started as a temporary job soon blossomed into a career that has been, “a privilege and a joy”. Her experience of the industry and the wealth of opportunities it represents has made her a passionate advocate for drawing talent into the marketplace and opening up those opportunities to people from all different walks of life.

Why insurance needs to adapt to changing employee requirements

There’s a range of different strategies which can be utilised to make insurance a career destination of choice – from attractive compensation and benefits packages, creating new mentoring and networking opportunities, and making the right investments in technology and innovation. Underpinning each of these, however, is the need for insurance to adapt to changing workforce needs by prioritising the employee well-being considerations that have arisen in a post-COVID world.

For Zurich, this has included the rollout of a flexible working campaign, which Lidster noted has been very successful in the SME business, where 18% of its workforce now work either part-time or flexibly. “Being able to bring that to life in the interview process has been really important,” she said. “We absolutely see it as our responsibility to attract talent and retain talent through meaningful career paths. We see it as vital to our success – but also to the success of our wider industry, because this is a people-focused industry.”

What is a healthy talent recruitment and retention strategy?

A healthy recruitment strategy centres on a keen understanding of your value proposition, which for Lidster’s team centres on delivering a strong service proposition. Its recruitment strategy looks to focus on that service element and on finding individuals with the right transferable skills to work in a customer-facing role.

“They could be either in their early careers or during career changes at different times in their life,” she said. “We’ve got examples of people that have joined us from coffee shops, flight attendants, bar staff, retail workers etc. and we’ve also had some who had caring responsibilities in the past. We’re basically looking for people who pride themselves on delivering excellent customer service, love working in a fast-paced environment, are really good communicators and can demonstrate a desire to learn.

“We can teach all the technical elements of insurance, but what we’re really looking for is the right behaviours. Then once they’re in, dependent on their experience, we can support them either through an apprenticeship or the cert CII route. We’ve had 70 new starters in the last year which is due to the growth of our business and some of the great internal moves we’re seeing in the business.”

Getting the right people in the door is the first step but keeping them is where the real work lies. The key to getting that piece right is ensuring that they’re equipped with the right support and training. It is only by harnessing the expertise of experienced colleagues to work with new recruits through their induction that you build a high-quality team, empowered to support brokers and clients from the get-go.

“We delivered 40,000 hours of training last year in SME,” Lidster said. “A lot of that was to our new starters, but it was also on cross-skilling our existing underwriters on products. That enabled us to award 150 new underwriting authorities last year, enabling our underwriters to really support the broker demand, whether that’s on the phone or on live chat. It’s about empowering our people to become the decision-makers able to resolve that query as quickly as possible for the broker in that moment when they need us most.”

Global natural disasters have caused more than $117 billion in economic losses for the first half of 2024, a report published by global professional services firm Aon found.

Aon’s “Global Catastrophe Recap: First Half 2024” report noted that the total was notably lower than the $226 billion in economic losses recorded in the first half of 2023. It was also lower than the 21st century first half average, which was $137 billion.

The report, which was published by Aon’s Impact Forecasting team, also found that the recorded global insured losses for the first half of the year were at least $58 billion. This was higher than the 21st century first half average of $39 billion but was lower than what was recorded in the last three years, which exceeded $60 billion by the end of June.

The report further found that the total number of fatalities caused by natural catastrophe events was estimated to be more than 6,000, which was the lowest recorded number since 2020. The insurance protection gap was also estimated to have lowered to 50%, which was caused by the elevated insurance payouts for US severe convective storm (SCS) damage.

“It is great to see a lowering of the global protection gap, which is a result of the high levels of insurance coverage for the SCS events observed in the first half of 2024,” said Michal Lörinc, head of catastrophe insight at Aon.

“However, the re/insurance industry needs to continue its efforts to increase levels of insurance in emerging markets, through provision of not just capital and capacity, but also advanced data and analytics, which help to qualify and quantify the risk, and ultimately shape better decisions.”

The report further found that natural disasters in the US accounted for almost 80% of the global insured losses in the first half of 2024 as it reached nearly $46 billion. There were 30 economic loss events in the first half of the year that cost more than $1 billion. About 22 of them occurred in the US, two in South America, four in Asia, and two in EMEA.

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Global reinsurer PartnerRe has entered into a strategic partnership with Banyan Risk, a specialty managing general agent, to write excess casualty insurance, subject to approval by the Bermuda Monetary Authority.

Under the collaboration, PartnerRe will provide capacity and shareholder support for the launch of a new subsidiary called Banyan Excess Liability Ltd. (BELL). It will be based in Bermuda and sit under the Banyan Risk Ltd operation with a sole focus on excess casualty insurance.

BELL will be led by Alan Rodrigues, who was appointed CEO. He will be responsible for providing client solutions to the excess casualty market, which currently faces a challenging environment.

Rodrigues will build out a local team in Bermuda, reporting to the BELL board of directors.

Rodrigues brings to the role nearly 40 years’ experience in excess casualty, with oversight of billions in gross written premium.

Prior to joining BELL, he served as executive underwriting officer for casualty, leading Markel Specialty’s broad casualty business, including the Bermuda market.

Previously, he spent 13 years at AXIS Capital in London, Bermuda, and the United States. He also has a 16-year experience with General Star Management, a general reinsurance company.

Rodrigues began his career at Safeco Insurance in 1985 as a casualty underwriter.

His new responsibility, BELL, marks an expansion into a new Banyan product line, following the 2021 launch of Banyan Risk Services Ltd. In Canada.

Any thoughts about this story? Leave a comment below.

It’s a volatile time for the UK cyber insurance market, which saw double-digit rate drops continue in the first quarter of 2024, marking the second consecutive quarter the market experienced rate reductions to that extent.

However, there’s a contradiction at the heart of the increasingly ‘buyer-friendly’ nature of the market amid the reality that cyber threats remain significant and insureds are continuing to experience large ransomware and privacy losses.

Offering his insight into what’s happening, Gareth Bateman (pictured), cyber growth leader at Marsh in the UK, highlighted that these softening market conditions started gaining traction in the tail-end of 2023. “The trend has continued into this year with rate reductions, opportunities for buyers to reduce their retention, with most buying increased limits because they’re keeping the spend the same with rates coming down and so are reinvesting in increasing the size of their programme. It is a bit of paradox because, in the threat environment, we’re not seeing any letup at all.”

What’s underpinning the current environment?

Two key considerations are driving the current market environment – an abundance of capacity and intense competition among insurers, and the strengthening cyber risk management of UK companies. On the latter, Bateman noted that over the last couple of years, understanding of what controls are needed to defend against ransomware attacks, and what constitutes good cyber hygiene and maturity has proliferated throughout insureds, creating a better risk pool.

“Candidly, the biggest driver at the moment is competition between insurers,” he said. “Most of them are perceiving a rate environment that’s adequate for the risk so they want to write more business. Almost all of the 50 or so insurers in the UK market are hungry at the same time and they’ve got broad appetite. Programmes are over-subscribed, and the pricing environment is something which insureds are focusing on, which is driving competition in terms of rate.”

Creating a sustainable cyber insurance ecosystem

While it’s easy to dismiss competition as being healthy for a marketplace, Bateman emphasised the need for current market conditions to start levelling out if the cyber insurance sector is to be sustainable in the long term. From working closely with clients and having insight into their buying habits, he said, it’s clear that they want predictability and sustainable rates. What’s worrying him and his team is that some of the renewals which have registered double-digit percentage savings might not be available next year.

Rapid spikes, in either direction, of premium are not a sign of a stable or a sustainable market – and it is sustainability that clients are looking for, and which the insurance market should be looking to deliver. With regards to the long-term sustainability of the market, Bateman noted that while he doesn’t expect to see an erosion of the sector’s capital base, it undermines the credibility of the market to have significant volatility year after year.

That’s particularly true for a product which is a discretionary spend, he said, and it’s accentuated by the fact that a lot of businesses are still trying to understand cyber risk in the context of their own organisation. Even if they operationally understand what technology or data will knock out their operations if it’s compromised or encrypted, the next challenge is trying to quantify that knowledge in terms of its impact in dollar terms. That’s where having the right expertise and the right tools is critical because it enables clients to visualise their risk environment and loss profiles in a meaningful way. 

“Generally, there is a recognition across businesses that they need to get to this stage in order to understand what risk management strategy is the most appropriate,” he said. “Because until you quantify it, it’s very hard to make decisions and to prioritise.”

Opportunity in the cyber insurance market

The level of cyber awareness and hygiene differs substantially depending on what segment of the market you’re assessing. In heavily regulated or consumer-facing sectors, whether that’s pharmaceuticals or financial institutions, there’s a high penetration of cyber insurance because ever since the rollout of GDPR, they’ve understood the need to protect against data breaches. However, when you look at the smaller, mid-market segment, penetration rates remain perilously low.

For Bateman and his team, that’s where the real opportunity resides for the cyber insurance market – and brokers in particular – to shine. They have spotted real room to grow in that segment, and to build and develop a new customer base, rather than just looking to sell more coverage to existing customers.

It’s a very difficult conversation, he admitted, because these organisations are often going through a budgeting cycle that might take nine months. With the rate environment being what it is, it will probably be completely different at the end of that cycle, making it very difficult for the risk manager to have the right conversations with the CFO, and the CFO can’t have the right conversations with the board. But these conversations do need to be had regardless because cyber is a mission-critical risk.

Taking Marsh’s statistics as a bellwether for the wider market, it’s interesting to see how the book is growing.

“In some regions like Latin America and some parts of Asia, we are seeing increased flow of business, where there’s obviously adoption going on,” he said. “But even in the UK market, the opportunity is still significant in terms of new buyers. I think the recognition of cyber risks is growing.

“So, there’s a market of buyers who recognise the risk, and there’s a market ready to offer it which is hungry for the premium. It comes back to that credibility point – about communicating the breadth of the product, creating greater transparency and trust, and creating greater stability in the pricing environment.”

In his last Press briefing as CEO of Flood Re, Andy Bord (pictured) had a clear message for the insurance industry – to be bold, creative and committed when it comes to the “world-first initiative” that is Build Back Better.

During a discussion on Flood Re’s Annual Report – which saw the number of policies ceded to the Scheme increase 9% to 288,567 – Bord underscored that Build Back Better is a personal cause for him and one he is very proud to see so widely supported by the market. “Over 70% of insurers are now offering Build Back Better but we need to see that number change,” he said. “We need to see it get to 100% so it just becomes normalised.

“My call to insurers is to embrace that and for those that don’t yet offer Build Back Better to do so as soon as possible and join the rest of the pack. But Build Back Better only matters if, as well as being eligible for it, when the rubber hits the road and an actual claim is experienced, the customer has a conversation with their insurer about being built back better.”

Build Back Better in action

Storm Babet was the first real test of this in action, Bord said, with an average of 30% of the resulting claims ceded to Flood Re utilising an element of the initiative. Offering a personal perspective, he said it’s very difficult to see why virtually all of these claims – which were ceded to Flood Re as a result of being high-risk – didn’t contain an element of being built back better.

“We want to see, in subsequent events, that 30% being far closer to 100%,” he said. “That’s certainly my ask on insurers. It has been great how Build Back Better has been embraced but there’s more to do to make sure 100% of insurers are offering it and that when their customers get hit by the trauma that is flooding, this conversation takes place at the right time.”

The requirement is there for the insurance industry, in conjunction with the government, to act quickly and decisively when it comes to embracing the full potential of the Build Back Better initiative. This potential was on full display at the RHS Chelsea Flower Show 2024, where Flood Re unveiled the prize-winning Flood Resilient Garden. It was a proud moment for the team, Bord said, and one that gave it the opportunity to speak with a whole different group of customers about the importance of flood risk adaption.

How to advance industry adoption of Build Back Better?

As to what’s holding elements of the industry back from embracing the initiative and how other insurers might be brought along on the journey, Bord emphasised that it’s still a relatively new offering.

“The fact that 70% of insurers are offering it and, when we have had claims, 30% of them have had Build Back Better attached is a positive,” he said. “My observation is that it’s not enough, yet… I’m taking the slightly more holistic view that why wouldn’t the vast majority [of insurers] be eligible for having conversations with their customers that make them more resilient into the future?

“We’re talking to insurers at the moment, and surveying across the insurance space based on a very specific set of questions around the claims incurred – by Babet in particular – about the Build Back Better experience, what went well and what was more challenging. That’s how we can actually seek to influence best practice, from a positive place of knowledge rather than speculation.”

Bord highlighted that Flood Re is aware that the right thing to do is to maximise the number of homes that are better protected if they are at risk of flooding. If they’ve been ceded to the scheme, de facto, they are at risk of flooding, he said, and so it’s hard to understand why they wouldn’t take advantage of the initiative. The hope is that this research will quickly yield intelligible insurance that the team can use to encourage insurers to act on that information.

Mandating Build Back Better?

Interestingly, he said, data around Build Back Better and its effectiveness is something that the new government has already asked Flood Re for further information on, so the future is looking positive. As to whether Build Back Better might eventually be mandated both at the point of repair and as part of the planning framework, Bord expressed his hope that Build Back Better becomes normalised rather than mandated.

“I’m also optimistic, because of what I know that insurers can do, that it doesn’t have to be mandated to get that outcome,” he said. “I think it’s the opportunity for insurers to step forward on both counts – for those insurers that don’t currently offer it to accelerate their development so that they can offer it…

“And then when flooding does take place, to really be challenging themselves as to make sure their repair network and supply chain is aligned around the premise that Build Back Better is likely to be required, rather than being seen as the exception that then needs to be bolted on.”

This article was provided by Tony Buss, CEO of ARAG UK

Our recent surprise general election inevitably kicked a swathe of legislation off the parliamentary agenda and into the long grass. How much of it the new government will dig out and seek to pass remains to be seen but, whatever priorities they may have, the in-tray awaiting incoming Justice Secretary Shabana Mahmood, was also overflowing.

The Terrorism (Protection of Premises) Bill, otherwise known as Martyn’s Law, is perhaps the highest profile piece of legislation that the government didn’t manage to rush through in the ‘wash-up’ period, before the last parliament was dissolved. Before the election, Kier Starmer restated Rishi Sunak’s promise to introduce the legislation “at the earliest opportunity”.

The Football Governance Bill, which will create an independent football regulator, also seemed to have broad cross-party backing, but failed to make the cut. As did the Tobacco and Vapes Bill, for which the new government had similarly shown support, in opposition.

Add to these the much-anticipated Renters (Reform) and Criminal Justice Bills, not to mention the planned sale of the state’s remaining stake in NatWest Bank, and there’s plenty to consider, quite aside from whatever legislation the new government wants to introduce.

But legislation is only one side of the justice equation. The widespread and almost catastrophic failures in the administration of justice make a mockery of any attempts to create new law. What is the point of laws if you cannot effectively apply and enforce them.

Considering the seriousness of the situation, there was surprisingly little discussion of our failing justice system in the run-up to the election, though all of the major party’s manifestos addressed the issues to some extent.

Inevitably, the focus of those comments and commitments was the chronic and widespread dysfunction in our criminal courts, where backlogs and delays are ruining and even risking lives, and voters’ imaginations are always more easily captured.

But the problems in civil justice are just as extensive and the consequences, while perhaps not as serious or easily explained as criminal court delays, are significant.

Billions of pounds are tied up in money claims, for which backlogs were mounting before the pandemic and have only continued to increase. The cumulative drag this creates on the economy is almost impossible to quantify but delays undeniably cause major headaches for businesses.

Employment tribunals understandably fall some way down the pecking order, but the financial drag on businesses of all sizes waiting more than a year to resolve disputes with current or former employees is significant too.

The justice system has also been impacted by underinvestment in other areas, such as the NHS. The Birth Trauma Report, published in May, very briefly brought the unconscionable state of maternity services to national attention.

Maternity scandals at specific trusts, such as Shrewsbury and Telford, East Kent, Cwm Taf and Morecambe Bay have hit the headlines from time to time, but the Birth Trauma Report has highlighted what many already suspected.

These trusts may each have had their own particular problems, but the causes seem to be endemic across the country. Time and again, reports have detailed shortages of both equipment and staff, inadequate funding for training, cultures of bullying, secrecy and denial.

Quite aside from the terrible human cost and the huge financial burden this puts on the NHS and other services, these failings push thousands of long and often highly complex cases into a justice system which really doesn’t need the extra work.

The national purse strings will obviously be tight for some time, and the challenges facing the courts and the NHS are unlikely to be solved overnight. But both offer a tempting mix of quick dividends and huge, longer-term benefits.

It’s inevitable that newly elected legislators will want to legislate, but justice will be better served if we can have more courts open, or at least hear more cases in the ones that are available.

A glance down any high street in the UK serves as a reminder of the critical role small-to-medium enterprises (SMEs) play in creating varied and sustainable communities.

However, all too often, it’s easy to think of risk in the context of large corporates – whether it’s around cyber, business interruption, climate change or economic uncertainty. The reality, however, is that SMEs account for 61% of UK employment, according to UK Parliament statistics released in May this year, and the onus is on the insurance industry not just to cover the risks facing these businesses today, but also to evaluate how they are evolving amid broader financial, technological and geopolitical considerations.

This is where the role of the insurance broker comes into its own as they look to support their customers by ensuring they’re obtaining coverage terms that match their evolving risk profiles. But between inflationary and cost-of-living pressures, the need to find the right terms and conditions at the right price is more pressing than ever – and SME brokers are on the frontline of navigating that balancing act.

The digitalisation challenge facing brokers

Among the top challenges impacting brokers today, digitalisation and the advancement of new digital technologies are a core consideration. Faced with the requirement to adapt to and utilise these technologies so they can meet customer expectations, stay ahead of emerging digital risks and adjust to the changing regulatory environment, brokers require more support than ever in order to remain competitive and support their SME clients.

From her perspective as SME portfolio director at Aviva, Rebecca Gambrell (pictured) is seeing that brokers are increasingly looking to expand their digitalisation strategies. She noted that it’s incumbent on insurers to engage with these brokers and to set up the right support channels to help them understand which risks they can place digitally.

As with operational change, the speed at which brokers are embracing this digitalisation journey varies from one to another. For some, this is a monumental step-change in the way they do business – while for others, it’s just the next step in a wider digital transformation strategy. “With smaller brokers, they’re actually more engaged because it makes everything more efficient for them.

“Sometimes it’s harder when you’ve got a larger broker but, again, it’s about having the right conversations with them and helping them along that journey…  [As an insurer], the answer is to make ongoing investments into your digital products and to keep them up to date. And that’s where broker engagement is key because that’s how you understand where they’re having difficulties and help to take those away.”

Underinsurance and its impact on SMEs

Another pressing challenge facing the insurance broking sector is the growing spectre of underinsurance as the cost-of-living crisis is further compounded by concerns around data quality and maintaining effective communications with clients. Aviva’s recent Broker Barometer survey revealed three in four (73%) brokers worry about clients being underinsured, with inflationary pressures cited as a primary cause.

With millions at risk of underinsurance, offsetting this risk is clearly going to require a new tool in brokers’ toolkits – with data-driven insights fast-emerging as the most likely solution.  For Aviva, this saw the introduction of a new quotation tool, leveraging Named Entity Recognition and GenAI to analyse brokers’ commercial SME presentations.

Having the right partnerships across the insurance ecosystem is also instrumental to ensuring that brokers are equipped with the right tools, products and solutions to support their insureds, and for Gambrell and her team, keeping these partnerships healthy, transparent and evolving is key. “We recognise that at the end of the day, it’s brokers who are there to advise the customer and support them in their insurance needs,” she said. “So, we need to do everything we can to make that easier.”