Regulation was the main issue concerning brokers, revealed a survey commissioned by Norwich Union (NU).
The survey revealed that nearly a fifth (17%) of brokers saw regulation as their biggest challenge, an increase of 7% since the end of 2003.
NU said family-run brokers were the most pessimistic about regulation, being the least prepared and in greater need of support to help them with regulation. The survey revealed that small, independent brokers had the same attitude to the impending regime.
More than a quarter of brokers in these two groups said they felt threatened by the new industry standards, said the insurer.
Only 56% of the family-owned group had prepared for the FSA, said NU, compared with 70% among the pro-technology brokers who don't see regulation as having a major impact on their business.
Despite their concerns, the survey revealed that almost two-thirds of broker businesses were planning to expand in the next 12 months. At the same time, there was evidence that a large number would retire as soon as they were financially able, the insurer said.
After regulation, 15% of brokers cite competition as the major challenge, though the number feeling the pressure has dropped 7% compared to last year.
NU intermediary business director Ken Wallace said: "While regulation is clearly a worry for some sections of the broker community, the overall impression from our research is positive, with almost 85% saying they are optimistic about the future."
