Biba 2025: Commercial market is ‘changing more rapidly’ than ever before – Allianz’s Nick Hobbs

As the commercial market is now changing “more rapidly” than in prior years, brokers that fail to adapt risk being left behind.

That was according to Nick Hobbs, chief distribution officer at Allianz Commercial, who warned that the commercial market was undergoing the fastest change he had seen in his career, posing a major concern for many of the insurer’s broker partners.

He told Insurance Times at last week’s Biba Conference (14 and 15 May 2025): “The market is changing more rapidly than I’ve ever seen in my career. It’s moving in a different direction at a rate of knots.

“In nine months, it’s been a complete change. We have seen some brokers taking great advantage because they are geared at providing low cost solutions, [understanding] what is required of the market and asking the right questions.”

Rising competition

Hobbs additionally explained that managing commission volatility is another current major challenge facing general insurance brokers. This is because as pricing fluctuates, brokers’ earnings rise or fall in tandem and “their ability to earn commission is compromised” relative to market conditions.

He continued: “Brokers have geared up to provide a level of services commensurate with earnings that they thought were going to stay there – but those earnings are not, they’re being eroded by the behaviours of others in the market.”

Furthermore, despite ”30% market health in 2023 and 2024”, Hobbs warned that heightened expectations for 2025 amid softer market conditions are creating more pressure as insurers, brokers and MGAs compete for the same business.