Brokers aiming to use soft market to address property underinsurance – Aviva

Brokers are planning to capitalise on the ongoing soft market environment to tackle persistent issues with property underinsurance, according to the latest Broker Barometer survey from Aviva.

The survey, released today (9 March 2026), found that 68% of brokers believe there has been an industry-wide increase in claims being declined or settled for less due to underinsurance and that 82% of brokers intend to use soft market conditions to address the problem.

The concerns mirror figures published by Aviva in 2025, which suggested that 67% of UK commercial properties are underinsured, with an average shortfall between sums insured and rebuild costs of a dramatic 79%.

Indeed, the prevalence of underinsurance has become so severe that 87% of brokers feel the industry should be proactively addressing the issue, up from 80% last year.

Lack of awareness (40%) was the most commonly cited reason for inadequate cover for clients, followed by misunderstanding the impact of inflation (33%), misunderstanding policy terms (32%), belief that ‘it won’t happen to us’ (30%) and cost (29%).

Embedded behaviour

Jason Chambers, director of innovation for commercial lines at Aviva, said: “Underinsurance is no longer just an oversight – it’s becoming an embedded behaviour. At today’s rate of index-only correction of around 4.4%, simply relying on incremental renewal increases can leave customers materially underinsured for 15 to 25 years.

“When that gap persists, underinsurance doesn’t just create financial pressure, it can turn a manageable setback into a far more challenging situation for a business and its people.”

He continued: “This is the moment to reset cover properly. Encouragingly, brokers are planning to seize the opportunities presented by the current soft market. With lower premiums creating more flexibility, many are proactively using this window to help customers reassess their cover and close underinsurance gaps.

“It’s a critical moment for deeper engagement – and we’re stronger together when brokers, customers and insurers tackle it in partnership to strengthen long‑term resilience.”