Competition from direct insurers biggest threat to brokers' home growth

Increasing competition between brokers and from direct insurers is the biggest threat to growth in the home insurance sector, according to research by LV= Broker.

In a survey of personal lines brokers, half (51%) said the biggest threat to growth would be growing competition from other brokers and direct insurers in 2015.

Home insurance premiums fell by around 5% across the market over 2014.

LV= said the reduction was owing to many insurers looking to grow their share of the market to make up for less profitable motor business.

Almost a third (29%) of brokers identified adverse weather as the biggest threat to the sector, with a further one in ten (10%) citing the implementation of Flood Re as the key challenge.

Personal lines director Michael Lawrence said: “The home insurance market is extremely competitive at the moment with rates having fallen over the last quarter.

“There is still a great opportunity for brokers to grow their book by providing advice and services to customers in what is a challenging and increasingly diverse market.

LV= Broker recently expanded the underwriting footprint of its ABC home insurance product to include more postcode areas and occupations, as part of its continued strategy to grow in the home market.