Half of UK brokers believe it is not cost effective to handle small books of personal lines business in-house.
However, only 4% are currently outsourcing, according to new independent research conducted for underwriting agency PlusOne.
According to the 261 brokers questioned by Broking Now!, 42% handle these accounts only as accommodation business for commercial clients.
21% of brokers showed interest in outsourcing with the most popular size for a book of business that brokers would be interested in outsourcing being up to £1m.
James Wallis, managing director of PlusOne, said: “Based on our own experience outsourcing a book of personal lines business from £250,000 to £10m, the broker continues to generate profit while the day-to-day hassle is removed and customer service improved.”