In Focus: How insurers use data to support broker schemes – and what happens when it’s limited?

The schemes market is currently booming, with Insurance Times having recently revealed that the 10 biggest schemes generated over £30m in commission across nearly £200m of written premium over the second half of 2025.

And there is no doubt that the work between insurers, MGAs and brokers is contributing to the success of schemes, with data sharing being essential as customer needs continue to evolve.

Schemes refer to a delegated underwriting arrangement between a broker and an insurer, with the insurer delegating certain aspects of the insurance process to partner brokers under pre-agreed terms.

When it comes to data, this is commonly shared through bordereaux, an application programming interface (API), system integrations and regular performance meetings.

Stephen Gibson, managing director at Avid Insurance, said: ”Our approach [is] no data [means] no binders, no relationship.

”Data is fundamental, if you don’t have that there is no point in trading.”

And Joel Markham, director of schemes and delegated authorities at Axa, added that schemes “start and finish” with the data, which is key across the total lifecycle of a scheme.

“If you don’t have good data, insurers will be less interested because it makes it difficult to assess [if] the scheme works, or if is fit for purpose, he said.

“It also makes it really difficult to launch into new areas.

“Customer needs are evolving and you need to look at the geopolitical landscape – every industry has the same kind of challenges insurance has.

“So, getting hold of that data to launch something new is really important to make sure it is going to work for the customer, the partner and the insurer.”

How data is used – and what happens when its limited?

Importantly, the amount of data available today is increasing at an exponential rate.

And when insurers have the data they need, they can support brokers’ schemes in a variety of ways.

This includes through dedicated underwriting teams, pricing and rating guidance, product design and enhancements, stable and long-term capacity commitments, insight and management information, governance oversight, claims support and risk management expertise, according to Nick Grazier, group sales and marketing director at Bspoke Group.

Grazier added: “Data is critical because it enables accurate and competitive pricing, helps spot deteriorating performance early, identifies profitable niches and informs underwriting appetite.

“It can also be used to support new product development, while enabling more real-time pricing and faster speed to market.”

Meanwhile, John O’Connor, head of schemes at Markerstudy, said: “In line with all sectors of the insurance market, data is an important factor. It needs to be shared between the insurer and broker to better facilitate ongoing growth and to retain profitability on an account.

“It can be used to highlight areas that are not currently being reached or realising their full potential, allowing meaningful conversations to aid both parties.

“Data can also help build trust and confidence, not only between an insurer and broker, but also with the customer.”

However, what happens when insurers do not have the right information to help brokers with scheme growth?

Grazier highlights that this can happen when risk-level data is limited, or there is insufficient data to evidence a new scheme or niche opportunity.

Markham said that when there is limited data, Axa spends time working with industry data houses to “try and top up our knowledge”, although said that “sometimes there is just no data”, especially for emerging risks.

However, if data is difficult to come across, Markham suggested that focus groups could be a key way to find out a customer’s perspective.

Markham continued: “We would also say that if we can’t find data to define a market niche, we’ve got to be asking ourselves the question – why do we think the customer is going to be interested if we are going to put a scheme into that space?

“Rather than see it as a negative, just make sure that if we are all going to invest the time and effort, customers are going to be broadly interested, even if we can’t validate that.

“And that’s where people are sometimes using focus groups because for emerging risks, those data points just don’t exist, but the customers do, who are going to need an insurance solution for them.”

System capabilities 

Meanwhile, Graham Wright, interim managing director at Allianz Personal Broker, highlighted a lack of data can occur ”due to incomplete data collection, outdated systems, or insufficient data analytics capabilities”.

”Add to this rapidly changing market conditions or emerging risks and gaps in available data appear. [This challenges] insurers to adapt quickly,” he added.

According to the 2024 Industry Trends Report, published by insurance software company Earnix in November 2024, modernising legacy technology systems is the biggest challenge for insurers today.

And 49% of the 431 global insurance executive respondents added that they were behind schedule with their digital transformation journeys to update legacy programmes.

This is not just on the insurer side, however. When asked if there are situations where brokers do not provide all the information needed for insurers to help with scheme growth, Grazier said: “Yes, and it is usually unintentional, driven by legacy systems that can’t easily extract data, uncertainty about what’s required, sensitivity or confidentiality concerns, manual processes that introduce errors, or simple resourcing constraints.”

Wright said that ”collaboration with brokers and investment in advanced data analytics can help mitigate these challenges and improve data-driven decision-making”.

Improving connectivity

However, as previously stated, the schemes market is booming.

The Insurance Times Schemes Index, released on 15 January 2025, showed that strong performances were seen across the top 10 largest schemes by written premium, with seven out of 10 reporting positive year-on-year growth – including each of the largest three schemes – and no scheme reporting a yearly fall of more than 11%.

There is always room for improvement over how insurers and brokers work together though, with Grazier highlighting multiple ways for insurers to improve connectivity.

This includes investing in technology integration such as real-time APIs, online portals and artificial intelligence (AI)-assisted triage and automation, providing templates and tooling to streamline data capture, setting clear data requirements and being transparent about how the data will be used.

Wright added: ”Regular communication through meetings and updates ensures alignment and addresses issues quickly.

“Providing ongoing training and resources equips brokers to effectively understand and promote schemes. Implementing feedback mechanisms allows insurers to make informed adjustments, while dedicated support teams offer personalised assistance.”