Challenges present ‘most exciting times’ in market for brokers – Alastair Swift

Challenges such as regulation and the softening market are all “excellent opportunities” for brokers that are willing to meet them face on.

That was according to Willis head of specialties Alastair Swift, who spoke to Insurance Times recently about the broker’s approach to some of the leading sector issues. 

He explained: ”The opportunity you have as a broker to truly differentiate yourself actually comes when markets are changing from a cycle perspective.

“There are opportunities when there is a change, whether that is market hardening or softening – those are the most exciting times in the market and, certainly from my career’s perspective over the years.”

Brokers’ biggest concern for 2025 is softening market conditions, according to exclusive research from Insurance Times that polled 850 UK general insurance (UKGI) brokers between October and December 2024.

The latest Insurance Times Commercial Lines Premium Index, created in association with software house Open GI, showed that the UK commercial lines market continues to soften, with average premiums in the first quarter of 2025 seeing an 11% decrease compared to the same period last year.

Swift added: “There are lots of ways you can differentiate yourself to clients – but, thinking solely of the trade and the transaction, then that opportunity happens when there’s a change. 

”But if you’re just relying on your transactional capability, you’re only going to be able to differentiate a little bit on the way up and a little bit on the way down. 

“If you want to differentiate yourself through all sorts of market cycles, then you have to have a broader proposition than your transactional capability. You have to be able to show clients what your risk insight and transaction do for them together from a risk management perspective.” 

Well, not overregulated

Outside of market challenges relating to the softening market, brokers are also facing into headwinds from the impact of regulation – even if the FCA has indicated a desire to simplify its rules and promote growth, in line with government targets. 

Swift was bullish on the value of regulation, noting that “a well regulated market is something that creates a backdrop for sustainable investment and growth across the sector”. 

However, he emphasised that it was important that the level of this regulation was proportionate, explaining: ”An overregulated market has the ability to kill growth. One of the big challenges for the regulator is to differentiate between making sure that you protect a UK client from a regulatory and vulnerability perspective, without overreaching and becoming the regulator of the regulator.

“With international business, for example, there are other regulatory bodies across the world, so the FCA doesn’t need to be as concerned about that. It can put frictional costs into businesses that can’t afford friction.” 

Swift added that he was positive about the regulator’s drive to improve how it worked with the insurance market.

He finished: ”Creating a well regulated market is actually to all of our, and our clients’ benefit. I’m not shy of regulation, I just think we should constantly be challenging ourselves to be the best regulated market – not an overregulated one.”