But firm finds broker woes about regulatory burden
Brokers believe schemes will be vital to the future of insurance, with 80% stating that the market will grow, according to research by UK General.
UK General managing director schemes Karen Beales said that 77% of brokers wanted to trade schemes within two years, and 95% within five years.
She said: “Although it’s difficult to quantify the overall value of the UK schemes marketplace, what is clear is that brokers believe the market has grown, with almost 70% saying their schemes business had grown by more than 10%.”
In a statement, UK General said that 64% of brokers thought the schemes market would grow for specialist or niche products. Brokers also expected schemes growth in the buy-to-let (47%), commercial property (38%), motor, travel and other property schemes.
Beales said: “It’s clear that schemes will continue to move in the specialist/niche direction, but almost one-third of brokers said schemes would also grow in the commoditised market, perhaps in response to lack of innovation in the standard sector.
“Our view is that customer requirements continue to evolve, even in the commodity marketplace, creating opportunity for brokers to develop volume schemes that are fresh and fit for purpose for the modern customer.
“Overall the message from brokers continues to be strongly upbeat about the prospects for schemes, especially in niche areas where the expertise and knowledge of independent brokers.”
However, Beales added that 6% of brokers with schemes said that the regulatory burden was persuading them to leave the market. She added: “Well over half of brokers (61%) said they were concerned at how FCA regulation would affect schemes.”
“This may be why 64% of brokers surveyed said insurer support for their schemes business was high priority.”
UK General surveyed 130 brokers in April.
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