2020 saw the hardest market conditions in the insurance sector in over 20 years, with the impacts felt in many sectors, from construction to food and drink. Within this macro-environment, many insurance brokers are struggling to find their clients the insurance coverage they require, at a price they can afford. For those with no access to the wider number of options that a network like Willis Towers Watson Networks can provide, life in the independent insurance brokerage can be a true struggle.
For around 15 years, the UK – and wider world – had enjoyed what could only be described as a ‘soft market’. Many different things have impacted on that, from the Grenfell Tower disaster to floods and from the Australian wildfires to large liability claims as examples and has resulted in a hardening market, perhaps for the first time in some brokers memory. Brokers will find that markets and capacity options are shrinking, and Insurers become more selective in the covers they provide. The resultant effect of this can be prices increases for clients.
In many markets, such as food and drink and professional indemnity insurance in the construction sector, insurers are leaving the market having no appetite for writing risks in these areas. However, this is true of many other sectors too, such as crime, product recall and D&O insurance. Insurers have had a long hard look at the risks they have insured and where any unprofitability has been rooted.
Other actions by insurers have been the imposition of new exclusions on cover, with different deductibles now emerging. Significant price rises have been another reaction, along with much tighter wordings within policies. In sectors such as food and drink, there has been a move away from full sums insured, to new loss limits.
As an independent broker you have to wear many hats to run your business. Sometimes you can feel very isolated when making decisions. Network Member have extra resources to call upon. One key strength is the peer to peer support that is freely given by other Network Members who could well have been exactly where you are now. In a hardening market the relationships and additional solutions that can be available via a Network can make the difference in placing or even winning business.
Our Network Members also know we will work with them, to help them find ways of restructuring client risks in such a way as to find an insurer with an appetite for them. We will brief them on what insurers expect to see in a risk and how to best present it. We will do all we can, using the vast number of relationships that we have, to help our Member brokers find coverage for their clients.
We have built our Network in such a way as to offer this added value to our Members, because we truly believe in independent brokers, whether start-ups or established, and wish to see them thrive. Regardless of which you are, joining our business family will provide you with Network resources such as established insurer relationships and wider market access at a quicker pace than you could achieve by yourself because we already have these relationships in place for you to access even if they have to take longer discussing and considering risks, in this very hard and difficult market.
By joining our Network, you have access to more markets and resources to place risks and have the support you require in doing so. As that is the essence of insurance broking, why would you not take advantage of this compelling proposition and opportunity?
To talk to us about joining our network, please contact Lynne Norledge on [email protected]