The vast majority of brokers expect schemes to become a more important part of the general insurance market, according to a recent survey
A survey of 150 brokers has found that 83% believe the general insurance market will become more geared towards schemes over the next five years, helping to boost their growth in niches and specialist propositions (question 1).
The survey, conducted by UK General from a mix of broker partners and non-partners, also revealed that one-third said their schemes book grew by over 30% in the past five years, and 15% said it had grown over 60% (question 5).
The survey revealed, however, that there is still capacity to expand schemes business, as 43% of brokers interviewed said that they do not currently participate in the sector (question 3).
UK General head of commercial schemes Tony Bloomer said the survey showed the growing importance of schemes, but he urged brokers to really focus on their proposition. “What is important is that niche and specialist markets do not fall victim to commoditisation,” he said.
“There must be a premium written in for the key technical and underwriting skills required to write specialist schemes.”
Specialist markets must not fall victim to commoditisation’
Tony Bloomer, UK General
Bloomer said the survey identified other challenges for the schemes market, such as the likely increase in broker demand for delegated authority and
the significant value ascribed to underwriting support.
When asked to rate the importance of insurer support in helping them become more involved in their schemes business, 55% of respondents said it was “very high” (question 4).
Around 37% of brokers said customer service support and support in underwriting capability were “very high” in importance when it comes to helping them develop their schemes business.
On the other hand, brokers said they were very confident with recruitment capabilities. Of those surveyed, 46% said it was not an issue in developing their schemes business.
Brokers with gross written premium of between £1m and £5m made up 44% of the interviewees, 21% were brokers with up to £1m GWP, 10% had GWP of between £20m and £50m, while 6% had GWP of more than £50m (question 2).