This report discusses the distribution landscape of UK commercial insurance. Each channel is discussed in turn, with a particular focus on the broker channel, which dominates the space. Analysis of responses to our 2022 UK Commercial Insurance Broker Survey brings insight into brokers' growth and digital transformation strategies going forward. The SME market is discussed, with due consideration given to smaller businesses and their relatively simple insurance needs. The report finishes with an outlook on the future of the distribution landscape, mentioning areas for brokers to develop, growth opportunities, and upcoming insurtechs in the space.
The UK commercial insurance distribution landscape is largely dominated by brokers, with a 78.6% share of commercial insurance distribution in 2021. Brokers facilitate the commercial insurance purchasing process by selecting products that best suit a business' needs and finding insurers that are willing to take on that risk. Brokers' services have become more valuable to clients in the past few years as the pandemic has highlighted the gaps in cover that exist in insurance policies and the need for comprehensive cover for businesses. Brokers' supremacy is not as profound among SMEs, although over 40% of all SMEs opted to purchase through a broker in 2021. Smaller businesses have less complex insurance needs (and less budget to pay fees) so are more inclined to turn to the direct and banking channels due to their quicker, simpler, and cheaper purchasing processes.
The UK commercial insurance distribution landscape is largely dominated by brokers, with a 78.6% share of commercial insurance distribution in 2021. Brokers facilitate the commercial insurance purchasing process by selecting products that best suit a business' needs and finding insurers that are willing to take on that risk. Brokers' services have become more valuable to clients in the past few years as the pandemic has highlighted the gaps in cover that exist in insurance policies and the need for comprehensive cover for businesses. Brokers' supremacy is not as profound among SMEs, although over 40% of all SMEs opted to purchase through a broker in 2021. Smaller businesses have less complex insurance needs (and less budget to pay fees) so are more inclined to turn to the direct and banking channels due to their quicker, simpler, and cheaper purchasing processes.
Scope
- Brokers increased their share of the market in 2021, with 78.6% of premiums being written through the channel. Brokers also saw a 4.7% increase in gross written premiums handled in the year.
- The SME space is more competitive, with many micro- and small-sized businesses utilizing the direct channel as well as PCWs.
- Mergers and acquisitions are still an important tool to larger brokers looking to grow and consolidate their business going forward.
- Cross-selling and upselling is the most popular strategy for all classes of broker in growing their business.
Reasons to Buy
- Identify the most frequently used channel to purchase commercial insurance.
- Adapt your distribution strategy to cater to the changing needs of clients and intermediaries.
- Learn how the market leaders have strategized to achieve their success.
- Understand the trends and themes set to transform the market in the future.
Table of Contents
1. Executive Summary
2. Commercial Insurance Distribution Overview
3. The Broker Channel
4. Other Commercial Distribution Channels
5. The Distribution Landscape Going Forward
6. Appendix
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Marsh
- Ardonagh
- WTW
- Aon
- Howden
- Arthur J. Gallagher
- BGL
- Amazon
- Chubb
- A-Plan
- Aston Lark
- Superscript
- Allianz
- Simply Business
- Churchill Expert
- AXA
- Zurich
- Tapoly
- Zego
- Cytora
