Brokers take aim at lack of capacity for non-standard business in MGA survey

A majority (85%) of personal lines brokers in non-standard markets believe that there are not enough insurers providing capacity for non-standard business, despite the anticipated growth for the market.

That was according to the results of managing general agent (MGA) Prestige Underwriting’s Non-standard Survey, published today (24 June 2024).

The survey revealed a widespread issue, with 79% of brokers surveyed across the entire market reporting difficulties in securing coverage for clients with specific non-standard risks in recent months.

Tim Baxter, head of broker development and partnerships at Prestige Underwriting, said: “At Prestige, we are committed to consistently enhancing our services and we hope to see a collective effort from all providers to better support brokers and their clients as the non-standard market continues to expand and evolve.”

Prestige surveyed 65 brokers involved in non-standard markets for the survey.

Service

Service quality and risk appetite in the non-standard market also emerged as significant concerns for surveyed brokers.

Nearly half (48%) of brokers believed that capacity providers were too slow in responding to new business queries, while 91% of those surveyed said that all insurance providers should adopt a broader risk appetite.

Support from insurers is another area of dissatisfaction, with over half (57%) of brokers feeling inadequately supported to effectively serve customers requiring non-standard insurance.

However, Prestige reported that brokers have acknowledged the importance of rated capacity – about a third (34%) consider rated capacity as business critical, while nearly half (49%) viewed it as important.

Baxter said: “The results of our survey underscore a pressing need for improvement in the non-standard insurance market.

”While brokers regard Prestige Underwriting positively, it’s clear that the broader market must address significant concerns around service provision and capacity.”