Nearly all have grown schemes in last five years - but a quarter don’t have personal lines schemes
Brokers are looking towards schemes and away from mass market transactions for growth, according to the 2014 schemes insight survey by UK General.
Some 59% of the 200 brokers polled by the specialist insurer predicted growth from specialist schemes – compared to 23% who thought they would grow from mass market transactional business.
Nearly all the brokers polled (95%) said their business from schemes had grown in the last five years. Of those, the biggest proportion grew their schemes business by between 30% and 60%.
Overall, one fifth of brokers said that schemes income now accounts for more than 60% of their total Gross Written Premium (GWP).
A further 24% of brokers calculated that schemes business makes up between one-third (30%) and two-thirds (60%) of their total GWP.
However 21% of brokers said less than 10% of their GWP came from schemes.
UK General schemes managing director Karen Beales said: “There are still brokers that could be winning the war for differentiation and capitalising on revenue from having their own specialist and niche schemes.”
UK General said there was particular growth potential in personal lines schemes, where more than a quarter of brokers currently derive no GWP at all.
It is offering up to £1000,000 to brokers to grow their original personal lines schemes at a Dragons’ Den style event at next month’s Biba conference.
UK General has set up more than 500 schemes.