In Depth: Risk-first broking – unlocking better terms through risk insights

To win out in the future brokers need to evolve from being insurance policy facilitators to proactive risk managers. Alan Sumner, risk management director, general insurance broking at Ardonagh Advisory, explains.

As the insurance landscape continues to evolve, brokers are under increasing pressure to prove their worth – not just to clients but also to insurers.

The days when broking was simply about placing insurance are fading. Instead, the modern broker must add value and act as a strategic partner, guiding policyholders towards risk management best practice and risk improvement, while providing insurers with the quality information they need to offer competitive terms.

The shift: Risk transfer to risk management

Commercial insurance has always focused on risk transfer – shifting financial burdens from businesses to insurers. However, this has also driven commoditisation, an increasingly unsustainable model. The most forward-thinking brokers are moving beyond pure insurance placement, becoming risk advisors who help clients reduce their exposures and, in turn, secure more favourable coverage.

Clients gain better-priced and tailored insurance while strengthening resilience. Insurers receive more detailed and clearer risk data, improving underwriting confidence. Brokers, like us, differentiate ourselves in a competitive market by providing long-term value beyond cost savings.

This shift benefits all stakeholders. Clients gain better-priced and tailored insurance while strengthening resilience. Insurers receive more detailed and clearer risk data, improving underwriting confidence. Brokers, like us, differentiate ourselves in a competitive market by providing long-term value beyond cost savings.

A landmark report by the Chartered Insurance Institute called The Future of Commercial Insurance Broking (2017) paved the way for this transformation, highlighting the growing expectation for brokers to play an active role in risk prevention, rather than simply facilitating cover.

Leveraging risk intelligence to gain an edge

To meet these evolving expectations, brokers are learning to harness new technologies, data sources and specialist services to improve risk assessment and communication. Among the most impactful tools available today are:

Remote and Data-Driven Risk Assessments
Traditional site visits can be time-consuming and costly. Telephone-based and data-driven assessments offer a vastly scalable and efficient alternative, delivering structured risk insights that enhance underwriting confidence.

Risk guidance for SMEs can also now be delivered in an instant to help businesses identify and mitigate risks, ensuring insurers have a clearer view of their exposures.

Desktop Valuations
One of the biggest threats to businesses is underinsurance, often caused by outdated property valuations. By addressing underinsurance proactively and ensuring sums insured are accurate, brokers can give both clients and insurers peace of mind, reducing disputes at the claims stage and enabling brokers to present more reliable risk data.

Health and Safety and Employment Law Advisory Services
Compliance gaps can lead to costly claims. By working with a trusted name in health & safety and employment law advisory services, businesses can stay compliant and mitigate risks. Brokers who connect clients with expert-led advisory services not only reduce claim incidents, but also demonstrate a proactive approach to risk prevention-something underwriters value highly.

Advanced Data Analytics
Insurers increasingly rely on predictive modelling and risk profiling to refine underwriting strategies. Brokers who integrate data-driven risk insights from providers can offer insurers a comprehensive risk picture, increasing their ability to negotiate competitive rates and favourable terms.

Strengthening relationships between brokers and insurers

A crucial development in this evolving landscape is the growing willingness of insurers to invest in risk management through bursaries and risk management funding.

Recognising the benefits of proactive risk assessment, insurers now often provide brokers with financial support to help clients access the very services outlined in this article. 

This trend enables brokers to deliver added value, while also enhancing the quality of risk data available to insurers, reinforcing trust, and encouraging more competitive pricing.

A risk-first approach isn’t just about adding value for clients—it’s about reinforcing broker-insurer partnerships. 

By equipping underwriters with clearer, data-backed risk narratives, brokers can:

• Secure better pricing and broader cover for clients.
• Speed up underwriting decisions, reducing delays and friction in negotiations.
• Build long-term trust with insurers by presenting well-documented risk improvements.

Conclusion: The future belongs to risk-first brokers

Brokers that leverage risk intelligence and advisory services are no longer just intermediaries – they are essential partners in shaping a more sustainable, resilient insurance market. Those who embrace this shift will not only unlock better terms for clients but also strengthen insurer confidence and build long-term success.

• For clients: Risk prevention means mitigating or avoiding potential financial loss, reputational damage, and operational downtime.
• For insurers: Brokers who provide data-backed risk insights make risk selection easier and more precise.
• For brokers: A risk-first approach ensures relevance, differentiation, and long-term growth in an evolving market.

As highlighted by the CII, the industry is moving towards a future where brokers are not just insurance policy facilitators but proactive risk managers (see case study).

Those who embrace this shift now will be the ones shaping the next era of commercial insurance; especially the brokers that turn risk management into a strategic advantage—delivering real, measurable value to both clients and insurers alike.

Alan Sumner is risk management director, general insurance broking at Ardonagh Advisory, soon to be Everywhen 

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