Brokers are said to have welcomed NIG's aquisition of Avon, saying it could prove a "breath of fresh air".
Grant Ellis of the Broker Network said he expected new "opportunities" for brokers now that Avon will have more freedom operate.
He said: "Avon's departure from NFU Mutual ought to increase competitiveness in the market considering that NFU used to prohibit Avon from competing in similar markets."
Ellis added that the move will herald the start of NFU branching out into non-agricultural areas. "Interestingly it allows NFU to compete in new ways in the market, becuase it used to be tied by Avon," he said.
"What is ironic is that NFU has sold off its Avon business to a player that is also competing in the agricultural sector," he added.