We’re keen on the opportunities presented by the current, increasingly competitive market. Next year will no doubt be a year of continued transition, with the ongoing change supporting brokerage growth.
Carriers are already vying for their selected share of a progressively softer commercial insurance marketplace. Tempered interest rates will reinforce continued consolidation among brokers, MGAs and insurers alike. There will be many opportunities for independent brokers amid the disruption.
In this environment, empowering your staff to be entrepreneurial within their own practise teams can supercharge organic growth. Given the ongoing consolidation among brokerages – and the disruption or disappointment that can follow – many of the most entrepreneurial individuals are seeking a new arrangement with supportive brokerages. This trend should continue into 2025.
A more competitive, flexible marketplace resets clients’ expectations. That means insurers and brokers alike will need to invest more effort and resources to realize the new opportunities.
The transitioning market may result in some inconsistency in service levels: insurers are actively adjusting their appetites and capacity, and still working to staff up accordingly. When resources are stretched, there can be wide variations in service levels; that directly impacts the amount of business we can write together.
That said, it’s great to see markets eager to write again and grant an audience to ‘unusual’ risks. Expect brokerage practice teams to be enthusiastic about approaching the unusual risks in this dynamic marketplace. With greater underwriter openness, new possibilities exist to innovate and provide different answers to clients who were frustrated by their experience the last few years.
Of course, a transitional year means there will be both ups and downs. Certainly, the complications arising from ongoing technological change, economic uncertainties and climate issues cannot be ignored. Overall, however, we’re enthusiastic about the strong organic growth that an entrepreneurial approach will deliver this coming year.
