Roundtable: UK insurance broking – reshaping the future  

As the post-Covid insurance-broking environment evolves, brokers are continuing to adapt to the new backdrop. A recent Insurance Age roundtable explored the challenges and opportunities, as brokers tackle today’s range of pressing objectives – and assess the future of the sector.     

Attendees

• Richard Beaven, former managing director, Academy Insurance Services
• Guy Davison, M&A director, Howden
• Eleanor Gamble, VP international markets, Acrisure
• Neil Hart, chief sales officer, Open GI
• Mark Knight, EMEA recruitment leader, Aon
• Martin Lacey, chief broking officer – specialty, PIB Group
• Michele Munn, chief customer officer, Open GI
• David Stirling, director, Crispin Speers & Partners
• Will Price, chief insurance officer, Uinsure
• Jonathan Skinner, group markets director, Jensten Group
• John Warburton, chief executive, Konsileo
• Benjamin Wigoder, financial services director, Utility Warehouse

Insurance, like many other industries, has experienced wave after wave of challenges over the last few years: the pandemic required companies to adapt to what has since become the ‘new normal’ – a workforce partly working from home (WFH).

This has subsequently raised questions about career development for the youngsters that have entered the industry during this time of momentous change. 

Other outcomes, such as slips in insurers’ customer-service delivery, as well as their increased use of automation and the decline in human involvement have been a concern for brokers too.

During a roundtable event in November, in London, sponsored by insurance-software partner  Open GI, brokers discussed current headline topics: insurers’ progress on customer service; how to attract, recruit and retain the next generation of talent; M&A activity; and what the world of broking might look like in the future.  

Insurer customer service: the human factor

Standards of insurer customer service have been a recurring topic in the industry – both during Covid and since then. While it was acknowledged that insurers are making changes, there was a feeling around the table that progress is not yet sufficient. 

Jonathan Skinner, group markets director at Jensten Group said that despite seeing a much greater focus on service overall, standards have not improved.

When something goes wrong, and where a decision is required, you need to speak to a ‘real’ person, and that can often be achieved in just a five-minute Teams call.

This sentiment was echoed by Richard Beaven, former managing director at Academy Insurance Services, who highlighted the frustration brokers face: “We have had a lot of conversations about how insurers are trying to improve what they call customer service, which often means the claims experience. But our teams find it hard to get to speak to someone on the phone. I don’t think we’ve seen an improvement at all.”

The lack of human involvement is also a bugbear for John Warburton, chief executive officer of Konsileo: “Broadly speaking, I think insurers are taking the wrong approach by trying to improve service through reducing human interaction as far as possible,” he said. “When something goes wrong, and where a decision is required, you need to speak to a ‘real’ person, and that can often be achieved in just a five-minute Teams call.”

Beaven agreed but noted that compliance can be a problem on this front. “We did persuade a few small firms to use Teams and that worked well but getting that through compliance was a complete nightmare. “‘The FCA won’t like it’ is their favourite answer,” he said.

Will Price, chief insurance officer at Uinsure, considered himself quite fortunate, describing how online tools offer a lifeline for his volume-driven personal lines firm: “We use Teams all the time,” he explained: “It’s a constructive and efficient way of getting things done, resolving issues and arguably preventing issues as well, by dealing with the risks as they arise.”

Attendees also considered whether promises from insurers to increase their ‘bricks and mortar’ presence made any difference. Warburton described this as “a red herring”. He said that what brokers needed was to be able to speak to the right person about a query: “It’s fine to be opening new offices but you have to put the right people in them.” 

In addition to presence, capacity can also be an issue. Michele Munn, chief customer officer at Open GI, highlighted the need for additional support in this area: “Getting access to underwriting capacity is a key challenge for brokers. Software houses need to have rating solutions that offer a strong panel of insurance products to provide breadth and choice in what is clearly a challenging market”.

Learning and development

Another key question for the insurance industry is to ensure its workforce has the necessary skills to face tomorrow’s challenges. Roundtable participants shared their thoughts on the levels of expertise within insurance companies today, while also reflecting on whether any deskilling may have taken place. Concerns were raised about the impact of automation of key processes, the trend towards hybrid working, and changing attitudes towards learning and development, within the younger generation.

Warburton opened the discussion by expressing his concerns: “What has been lost or is at risk of being lost is case underwriting and case claims handling. Nobody really understands the pricing algorithm or what the decision criteria are. In the ‘good old days’ you would look at a case and be able to explain what the risk factors were and why it had been rated high risk. You wouldn’t just apply the rating mechanistically; you’d have a rationale.”

Building on this, Martin Lacey, chief broking officer, specialty, at the PIB Group reflected on how hybrid working is affecting collaboration and development. 

He said: “Not everybody wants to join the ‘Tuesdays, Wednesdays and Thursdays’ club but there needs to be some consistency around which days people are in the office. If everyone was in at the same time it would create that buzz. I worry about youngsters’ lack of face-to-face experience.”

It’s fine to be opening new offices but you have to put the right people in them.

David Stirling, director at Crispin Speers & Partners, acknowledged these concerns but shared a more optimistic perspective. He noted that although he had been worried about the lack of face-to-face interaction, he realised younger professionals would adapt and learn what they needed to in their own way. 

Stirling also highlighted a broader trend in career progression, explaining how younger employees are approaching their careers differently. “I would advise anyone coming into the industry to stay where they are, whether on the insurer, broker or supplier side, for two to three years. But I find that some of the youngsters want to move on as soon as they’ve learned how to do something – whereas we were taught to learn something and then do it repetitively.

“It’s not a criticism of the youngsters, though,” he added. “It’s good that they’re willing and want to do more, but they will move around the market to do that next thing.”

Recruitment and retention

With an ageing workforce and key individuals leaving the industry in the post-Covid years, recruiting and retaining new talent is a pressing concern. Roundtable participants explored the persistent challenge of attracting talent to the insurance sector, touching upon why it is often perceived  as an ‘unsexy’ career. They discussed how these perceptions deter graduates and school leavers from seeing insurance as an attractive option and the broader implications for recruitment and employee workloads:

“It’s tough to recruit and retain really good talent,” confirmed Mark Knight, EMEA recruitment leader at Aon. “If we’re going to compete against organisations like Google, we have to be relevant and known. Much of this is about creating content that people can relate to, through videos, for instance.”

Knight highlighted a significant internal hurdle: “The biggest challenge is getting buy-in from senior people and other colleagues throughout the business. We all have a role to play here – and that is recording content or producing articles for LinkedIn. They need to make the time for that: it’s not just the responsibility of HR or recruitment; this is a team sport.” 

Beaven brought another dimension to the discussion, suggesting that the industry itself is one of the sources of persisting negative views about careers in insurance. “We employ people from a wide range of interesting disciplines, yet we sell ourselves as this relatively dull risk-management business that appeals to nobody. And that’s a problem,” he stated.

Neil Hart, chief sales officer at Open GI offered a counterpoint, shifting the focus to overlooked advantages of a career in insurance. “The industry is a massive vehicle for social mobility, particularly for brokers. For school leavers, what other professions are there where you can earn a six-figure salary without a degree? They’re fairly thin on the ground,” he said.

Benjamin Wigoder, financial services director at Utility Warehouse, added a final perspective, pointing to the unintended pathways many take into the sector. “People tend to end up working in insurance by accident,” he noted. “It’s not something people aspire to. Yet we have exciting and interesting problems to solve in this industry.”

M&A activity

Attendees reviewed the current M&A environment and discussed the attributes that make potential acquisitions appealing. While acknowledging that the market is highly active, with numerous opportunities, they emphasised the importance of careful evaluation to ensure they meet the needs of the acquiring business and its investors.  

“It’s a very active market,” noted Guy Davison, M&A director at Howden, whose firm ‘covers the waterfront’ from specialty through to personal lines, and commercial and corporate lines. “We look at lots of opportunities and we need to kick the tyres very hard: investors are looking for a sustainable return on investment,” he said. “Each business needs to bring something strategically, in terms of value, people and brand.”

Davison further emphasised the importance of strategic focus: “You’ve got to know what your key metrics are and focus on them – and be disciplined about applying them.”

Sharing a practical insight, he noted a trend in the market: companies are increasingly seeking out good, smaller, growth businesses. He pointed out that with some of the larger deals, acquiring companies might hesitate to integrate businesses with a high number of employees. In contrast, he observed: “A small office, with 10-15 people can work very well.”

Eleanor Gamble, VP international markets at Acrisure, offered a global perspective, highlighting the breadth of the firm’s M&A activity: “We started in the US market, then also moved into the UK and more recently into international markets, beyond the US; Europe and Latin America. It’s very competitive and there’s the right buyer for every business. Everyone’s looking at something slightly different.”

Gamble elaborated on the firm’s strategy, explaining: “We’re looking for good-growth, good-margin businesses. We also consider strategic and cultural fit. It’s important that they fit into our existing business model. So, we’re looking for very entrepreneurial, fast-growth businesses.”

The future

The roundtable concluded with a discussion on the future of insurance broking and whether brokers feel upbeat about what lies ahead. Key topics included the ways brokers are compensated for their expertise and the enduring importance of their knowledge and experience.

Warburton highlighted the critical role of commission-based remuneration in maintaining the sector’s vibrancy, emphasising its importance for the future: “Good insurance advice is critical to the efficient functioning of the UK economy. 

“If businesses feel that they are properly covered and have the proper risk management in place, they make investment decisions that are different from those that they would make if they were worried about the risks that we can cover in the industry.

It’s not a criticism of the youngsters, though. It’s good that they’re willing and want to do more, but they will move around the market to do that next thing.

“Good insurance broking is a real driver of productivity growth and general economic growth. I think it’s important that the government understands that.

“It requires having a vibrant advice-giving sector, which means that commission has to stay. That’s where the ‘red line’ is for me,” he said.  

Turning to the future of insurance broking from a career perspective, Knight struck an optimistic note, focusing on the evolving role of the industry. He said: “The world’s becoming a more volatile place and the relevance of a business like ours to our clients, in helping to guide them through risks like cyber and climate, is only going to increase.

“This is a place where people can have an interesting career and where businesses can flourish, if they have the right product to offer, as well as everything else that people value. This is what gives me a positive outlook for the future of broking,” he said.

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