MGA reveals more broker interest in non-standard opportunities

Over three quarters (79%) of brokers saw more non-standard insurance enquiries over the past year.

That was according to managing general agent (MGA) Prestige Underwriting, which also said that an equal amount were expecting continued growth in this area in the year ahead.

The MGA said the anticipated growth was primarily attributed to an expected rise in the number of customers entering the non-standard market.

Some 13%, meanwhile, believe that growth will be driven solely by an increase in premium rates.

Alison Williams, managing director at Prestige, said: ”All the insights we review, whether they come from economic analysis or the perspectives of brokers on the High Street, point to the same conclusion – there are opportunities and growth ahead.”

Niches

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

Focusing on specific sectors, more than half (55%) identify the biggest growth potential in insurance to come from unoccupied homes and homes at risk of flooding over the next few years.

Additionally, 26% predict rises in the market for homes at risk of subsidence.

Meanwhile, over a third (35%) of brokers cite electric vehicles and another third (32%) identify high-performance cars as key areas for future growth. 

However, 89% of brokers believe that more non-standard customers are, or will become, underinsured as they attempt to economise on insurance expenses amid cost of living pressures.

“We must continue to collaborate to enhance efficiency wherever possible and minimise underinsurance,” Williams said.

”Importantly, we must also make the broader insurance market aware of the forthcoming growth, so that insurers can take into account the necessary changes to their distribution methods, thereby aiding consumers entering the non-standard segment.”