Broker Distribution Insight – Which Insurers Lead The Way?

Broker Distribution Insight Report Overview

Brokers’ goals have slightly changed as the UK economy emerges from the COVID-19 pandemic and heads into a potential recession. The importance of underwriting flexibility to brokers has grown significantly in recent years, with brokers ranking it the most important factor when choosing an insurer.

Brokers were increasingly choosing insurers as the best-in-class for relationship managers in 2023, so insurers must make sure they keep excellent ties with brokers. To maximize the benefits of cooperation, both parties must supplement high-quality product and service offers with effective relationship management. The industry’s widespread adoption of digital technology has increased the demand for insurers to create cutting-edge and efficient online solutions. Insurance companies must not fall behind in this area or they run the danger of losing large portions of future revenue.

The broker distribution insights report explores insurers who can be considered market leaders from the point of view of commercial brokers. It explores the factors brokers find most important when selecting an insurer with which to place business and analyzes how this has changed over the course of the COVID-19 pandemic.

Broker Distribution by Factors for Insurers Selection

Some of the key factors for brokers when selecting insurers are flexibility in underwriting/cover, claims service quality, price/premiums, and quality of the insurer’s product material. Brokers’ top consideration when choosing an insurer in 2023 is the insurer’s flexibility in underwriting/cover. They are placing value on insurers who can assist in plugging gaps across their spectrum of clients after the pandemic highlighted the varying risk exposures of different industries. Furthermore, macroeconomic factors such as inflation have emphasized the importance of flexibility.

Compared to pre-pandemic levels, brokers are prioritizing price/premiums which is likely to be echoing their clients after a financially strenuous period for businesses. Despite the prevailing trend of digital transformation sweeping across the insurance industry, brokers still place little importance on insurers’ e-trading capabilities. Super-regional and provincial brokers place greater emphasis on the quality of the claims service than their national counterparts. Small brokers are more likely to have fewer clients and more personal relationships, so a bad claims experience could be more detrimental to their business relationship.

Broker Distribution Analysis by Factors for Insurers Selection, 2023 (%)

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Broker Distribution by In-Class Insurers

Aviva is the top performer among in-Class Insurers as it had the highest best-in-class rate among brokers across all categories surveyed. With more than half of all brokers rating Aviva’s extranet sites, online assistance, and e-trading capabilities as the best-in-class, the company’s online capabilities are market-leading. The closest rivals to Aviva are Allianz, AXA, and Zurich, who frequently rank in the top three in most categories. Other providers to appear among the leaders are Hiscox, NIG, and Ecclesiastical.

Broker Distribution Analysis by In-Class Insurers, 2023 (%)

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Broker Distribution Insights by In-Class Insurers- Based Services

The broker distribution insights report provides a comprehensive analysis of the best-in-class insurers- based services such as claims service, e-trading capabilities, extranet sites, flexibility in underwriting/cover, online support, partnering with a new scheme, product material, compliance and regulatory support, record in sustainability and ESG policies, relationship managers, and speed of response to queries/quotes.

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Broker Distribution Insight Report Overview

Key Highlights

• Aviva was the standout performer in the eyes of brokers once again in 2023. It was the leading performer in nine out of 11 categories for which brokers were asked to select their best-in-class insurer.
• Brokers’ goals have slightly changed as the UK economy emerges from the COVID-19 pandemic and heads into a potential recession. The importance of underwriting flexibility to brokers has grown significantly in recent years, with brokers ranking it as the most important factor when choosing an insurer.
• Brokers of all classes selected flexibility in underwriting/cover as the most crucial factor when choosing an insurer to place business with in 2022 and 2023, highlighting the importance of this factor for both brokers and clients.

Reasons to Buy

• Understand which aspects brokers are placing increasing emphasis on when choosing an insurer with which to place business.
• Compare yourself with market leaders and see how they are strategizing.
• Enable yourself to continue adapting to the post-COVID era in line with brokers’ expectations.