Nine in 10 non-standard brokers concerned about underinsurance

Brokers in the non-standard market are increasingly concerned about the impacts of underinsurance, with 84% reporting that the current level of premiums is impacting their clients’ ability to maintain adequate coverage.

The statistics come from a new survey, released today (11 August 2025) by MGA Prestige Underwriting, which polled 99 brokers involved in the non-standard markets between 3 February and 3 March 2025.

A further 92% of brokers felt that non-standard customers were particularly at risk due to efforts to economise on insurance costs, a slight increase from the 89% that raised the concern in a 2024 poll.

The firm suggested that underinsurance problems in the non-standard market were being “exacerbated by structural constraints” such as flood-prone properties and thatched homes relying on outdated rebuild valuations, as well as a shrinking pool of expert and specialist contractors.

Economic pressures

Tim Baxter, business development and relationship director at Prestige Underwriting, said: “These findings underscore the urgent need for greater innovation and flexibility in non-standard insurance offerings.

”With economic pressures continuing to squeeze both brokers and their clients, it is imperative that we, as an industry, rise to the challenge of providing tailored solutions that address these unique circumstances.”

He continued: “The survey also sheds light on the perceived lack of customisation in products, with only 47% of brokers agreeing that current offerings from insurers adequately meet the specific needs of their clients. This reveals a substantial gap in the market for bespoke solutions that cater to the diverse and complex requirements of non-standard insurance customers.

“The data makes it clear that a one-size-fits-all approach is no longer sufficient. Brokers are seeking partners who are willing to listen and adapt to the evolving needs of their clients. Prestige Underwriting remains committed to working closely with brokers to develop products and services that bridge this gap.”