What are brokers most concerned about in 2025?

Brokers’ biggest concern for 2025 is softening market conditions, according to exclusive research from Insurance Times that polled 850 UK general insurance (UKGI) brokers between October and December 2024.

This survey underpinned the 19th edition of Insurance Times’  Five Star Rating Report: Commercial Lines and Personal Lines, which was published in March 2025.

Within the survey, Insurance Times asked brokers what their key concerns for 2025 were – 42 of the 177 respondents that answered this question cited that the soft market was giving them pause for thought.

According to Paul De’Ath, head of market intelligence at consultancy Oxbow Partners, rates tentatively started softening as far back as late 2023 – however, more noticeable and consistent rate changes “started in earnest in the second half of 2024”.

Branko Bjelobaba, principal at compliance consultancy Branko, told Insurance Times that brokers are understandably concerned about market movements, but that there is a silver lining.

He explained: “With a softening market, premiums could reduce and that would mean less commission for brokers.

”But it could also mean more choice for customers as insurers offer their products and say ‘we’re prepared to provide the same or greater levels of cover – so choose us because we can rival [other insurers] on service, on price, on commission.”

While the potential challenges of a softening market are at the forefront for the majority of Insurance Times’ broker respondents, it is far from the only thing that is worrying brokers for the upcoming year.

Increasing premium prices proved to also be a major concern for 2025, as rated by 20 brokers, as well as the political climate (18) and lack of industry professionals (16).

Low insurer appetites (12), the impact of technology and artificial intelligence (12), poor insurer service (11) and the high rate of M&A in the market (10) were further found to be notable considerations for UK-based brokers.

Biggest brokers most concerned by soft market

Broker size, as defined by gross written premium (GWP), impacted which of these myriad concerns were higher up respondents’ agendas.

Small brokers – with a GWP of less than £2.5m per year – rated policy price increases as a major concern in 25% of responses.

That number fell to 15% for brokers with a GWP of £2.5m to £10m a year, 13% for businesses with a GWP of £10m to £25m a year, 15% for firms with a GWP of £25m to £75m a year and just 3% for brokers with a GWP of more than £75m a year.

Bjelobaba explained that large brokers often service large clients that are less likely to “shop around” – especially when they have finalised complicated and bespoke products with an existing broker partner. Smaller brokers, meanwhile, often service smaller clients that do prefer to review their options regularly.

Furthermore, 16% of the small brokers polled – which typically do not have dedicated compliance teams – stated that the burden of regulation and compliance is a prominent concern for 2025.

That number fell dramatically for larger brokers respondents. Only 6% of firms that make more than £2.5m GWP a year mentioned regulation and compliance as a concern.

While medium and large firms are primarily concerned by the softening market, this apprehension is not shared by their smaller counterparts.

In fact, small brokers cited the soft market as a 2025 challenge in only 5% of replies, while 10% of brokers with a GWP of £2.5m to £10m agreed with this view.

This number jumped considerably for brokers with a GWP greater than £10m, with each of the three larger broker respondent groups citing it as a concern in a quarter or more of responses.

Opportunity for brokers

Broking trade association Biba advised brokers to see the softening market as an opportunity.

Its head of general insurance, Alastair Blundell, told Insurance Times: “Brokers are used to the insurance cycle of changing conditions, pricing and capacity and the competitive pressures it brings. Their expertise and [the] advice they give helps customers to get suitable insurance.

“The commission model of remuneration enables people and businesses to access this advice free of charge before deciding on buying the policy and the level of commission is part of a fair value assessment. Biba members can use our Oxera Fair Value Assessment tool to help them demonstrate the value they provide.

“As rates soften, brokers have the opportunity to encourage clients to think about reinvesting some of their savings on insurance spend on increased limits or new cover which maybe in the hard market they wanted, but could not afford – for example, cyber.

“The risk of underinsurance should also lessen. In a hard market, there is always the risk that an insured might under declare a sum insured in a false economy move to contain premium. When rates soften, clients are more receptive to a broker’s advice to get up to date valuations.”