The Big Question: How can insurance firms stay competitive and differentiate themselves in a soft market?

Phil Williams, group chief commercial officer and managing director of UK retail, The Clear Group

The idea that brokers have a right to growth in all market conditions is nonsense.

As the market cycle turns from hard to soft, we are presented with not only this challenge, but an economic environment which is difficult for businesses to manage.

The conditions for continued investment rely on stability and it certainly feels like there are a few chaos monkeys throwing bananas in the pot at the moment.

So, what do good brokers do? We focus on doing the basics right.

This means active opportunity management, building relations with clients on the challenges they face and being the first trusted advisor they turn to.

It means leveraging strong partnerships with key insurance partners to ensure we have the right products for our clients and it means driving efficiency so that we are lean and making the most of the resources we have deployed.

Charlie Munger, former vice-chairman of Amercian conglomerate Berkshire Hathaway and Warren Buffett’s long-term partner, said of stock market investors that “it’s only when the tide goes out that you see who is swimming naked”.

I suppose this is similar to the broking market. In today’s soft market, we will see which brokers – especially those growing through acquisition – have done the hard work of integration, building strong performing teams that are concentrating on customers and the propositions that suit them best.

Charles Boorman, chief executive, Kayzen Specialty

True differentiation is the only way to stand out in any market.

While business basics like an experienced team, excellent service, strong ratings and good broker relationships are necessary for success, they are simply what is required as a benchmark – they are not market differentiators.

In intermediated markets, success hinges on helping brokers grow their margins during soft market conditions. Insurers should look beyond individual risks to provide efficient mechanisms that allow brokers to easily place as much of their existing business as possible – not just homogenised SME business or excess directors’ and officers’ (D&O) business.

Insurers also need to offer genuine unique selling points that help brokers defend and expand their business, provide propositions that help them reduce internal costs and support them to focus on growth opportunities.

Those that fail to meaningfully differentiate in brokers’ minds will remain market followers rather than leaders.

Morgan Lyons, head of mid-market, Zurich UK

A softening insurance market can be perceived as a challenging time in the insurance industry, but it also brings a wealth of opportunities for both insurers and customers.

It tests the foundations and strength of every provider, alongside the ability to retain customers.

Customer retention is not just about price – it is also about the breadth of products insurers can offer.

If insurers offer a full suite of products, it makes pricing discussions much broader and gives more scope to adjust individual elements of cover.

A soft market is also a time to review levels of cover, particularly where potential underinsurance exists.

This means insurers can look at the cover in place and work out ways to create more security without incurring extra costs.

Working within a soft market is also when digital capabilities really come to fruition. We’ve worked hard in recent years to develop digital trading platforms – in a softer market, digital trading presents a more cost effective way to do business.

As an industry, it is crucial that we make customer service front and centre of everything we do – whatever the market conditions. We have worked tirelessly to achieve record customer satisfaction scores in recent years across our entire business.

This means the foundations to meet customer expectations are firmly in place. At a time when prices may be falling, expectations around service levels, knowledge and the claims experience will remain high.

Andrew Jones, risk consulting director, RSA 

In a soft market, insurers must differentiate beyond price by demonstrating real differentiation through their value proposition.

While premium pricing is important, clients are looking for more – they want trusted expertise, proactive risk management and a service experience that reassures them they are in safe hands.

Risk engineering and consulting services play a crucial role here. Insurers need to go beyond standard offerings and align risk management support with a client’s specific needs, embedding a culture of risk mitigation within their business.

Flexibility is key because simply providing off-the-shelf services is not enough.

True partnership means understanding a client’s business, anticipating challenges and delivering practical propositions that seamlessly integrate with their operations.

The demand for data driven insights is rising. Insurers demonstrating a deep understanding of a client’s business will stand out. Proactive risk management data means using claims data, catastrophe modelling and industry best practice to help clients learn from past losses and strengthen resilience.

Equally, client service is fundamental. Clients need to feel valued – not just as policyholders but as partners. Building strong relationships, being accessible and offering pragmatic support all contribute to stickiness – the loyalty that drives retention and sustainable growth.

Ultimately, success in a soft market requires working both sides of the loss ratio equation – minimising claims payouts while maximising premium payments.

By leveraging knowledge, fostering strong partnerships and delivering practical, client focused approaches, insurers can navigate market pressures while building lasting client relationships, trust and profitability.

Andy Fitzgerald, director UK regions, QBE Insurance

What makes the biggest difference in terms of staying competitive in a soft market is delivering on our commitment to brokers – sourcing the best propositions with our empowered regional underwriters who can make quick and informed decisions.

In recent years, we have invested heavily to support the growth of our business. As the market cycle changes, our brokers and customers can take comfort that this investment means QBE already has the capacity to maintain a high quality service and will not suffer from the growing pains of a quick rush for growth.

While pricing needs to be relevant, the trading teams’ knowledge and experience is crucial to help businesses tackle changing exposures or underinsurance.

At QBE, we are consistent in our appetite and approach. By innovating in claims infrastructure and data tools, insurers can take a forward-looking approach to risk modelling, assessment, analysis and mitigation.

While machine learning and artificial intelligence (AI) can help underwriters analyse vast amounts and sources of data, we view it as a means to augment underwriting, freeing our experts to concentrate on delivering the most value for our partners.

In these challenging times, it is crucial for insurers like QBE to increase their visibility. We are proud of our strong and consistent customer service, with feedback confirming its effectiveness.

As risks become more complex and unpredictable, insurers must elevate their technological and operational capabilities, innovate products and expand their value proposition.

This ensures insurance coverage is more reliable, accessible and resilient, helping insurers to build and maintain trust with customers and the markets they serve.