Although some regulators and clients may question the role of insurance brokers, trade organisation emphasises that ‘specialty brokers are the connective tissue of the global insurance market’
The London and International Insurance Brokers’ Association (Liiba) issued a hard-hitting report on 6 October 2025, calling on the insurance industry to do far more about closing protection gaps.
Unsurprisingly, Liiba noted in its publication that specialty brokers are critical to closing the world’s widening insurance protection gaps and helping the sector to keep pace with emerging risks.
The report said that the current protection shortfall is being driven by an “innovation gap” – described as the mismatch between the speed emerging risks are evolving and the pace at which the insurance market can develop insurance propositions to manage and mitigate these risks.
While Liiba’s report considers the global insurance market, there are lessons and implications for the UK general insurance (UKGI) sector too.
For Liiba, specialty brokers are uniquely placed to bridge the so-called innovation gap.
Far from being merely “distributors of risk”, the trade body thinks these professionals are the insurance industry’s research and development (R&D) function – acting as the first to identify emerging risks, aggregate client demand and build data frameworks that make cover possible. They also feed lessons from claims back into product design.
And product design is, according to Liiba’s report, both the issue and the solution in the effort to close any protection gaps.
Christopher Croft, chief executive at Liiba, said: “Closing the protection gap requires more than incremental change – it demands a transformation in how risk is understood, mitigated and transferred, with brokers at the centre of that shift.
“But if we fail to innovate at pace, the consequences are profound. The protection gap will continue to grow, leaving businesses exposed, investment constrained and economies more vulnerable. Closing that gap is not just an insurance issue – it is a matter of economic prosperity.”
Better understanding brokers
Liiba warned in its report that the value brokers bring is still not fully understood outside of the insurance sector – particularly among regulators that are less immersed in the industry and clients who too often judge brokers on cost alone.
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“Specialty brokers are the connective tissue of the global insurance market,” added Croft.
“They act as strategic advisors – identifying emerging risks, building the data to make them insurable, aggregating demand for new solutions and uniting diverse sources of capital. In doing so, they translate client needs into workable coverage and make insurance an enabler of growth and resilience.”
Liiba additionally explained that the need for innovation to address protection gaps creates an opportunity for London – in particular – given its scale, expertise and history of innovation.
For UKGI overall, Liiba’s report raises some important questions to consider.
For example, is the industry falling behind the required pace of technological implementation? Is the market delivering the innovations and new solutions that reflect clients’ risk? Does the UK regulatory regime allow the industry the ability to deliver required innovations and are brokers properly recognised for the role they play in the insurance process?
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