Widespread underinsurance a concern for majority of UK brokers – Aviva

Over two thirds (68%) of UK brokers are concerned that their clients are underinsured, Aviva has revealed.

According to the insurer’s Broker Barometer survey, published today (12 June 2025), seven in 10 brokers have seen an increase in claims that were denied or paid at a lower value due to underinsurance.

The most common explanation consumers gave for their underinsurance was policy price, with some 47% of surveyees citing it in their response.

Customer service (40%) and coverage options (38%) were also highlighted as key explanations.

Aviva also surveyed 85 properties to analyse the severity of underinsurance, finding that the average shortfall in coverage was 73%, or £400,000.

The insurer also said that only 28% of brokers’ clients regularly survey the value of their assets.

Jason Chambers, director of innovation at Aviva, said: “Brokers are telling us that underinsurance is still a real concern. Despite their optimism about growth in the year ahead, many of them are still worried that their clients aren’t fully protected.

”It’s easy to see why – conversations about cover and premiums can be tough, especially when cost is front of mind for so many businesses.”

Addressing the problem

The data also showed that 80% of brokers agree they should proactively address underinsurance.

Chambers added: ”We know that brokers recognise their role in helping clients understand the risks and many are already having these conversations.

“We want to help brokers and our mutual customers see that while price matters, the right protection matters more. And with the right tools and support, brokers are in the best position to guide those conversations and make sure clients balance, risk, premium and coverage.”