Trends: Brokers Prefer MGAs With In-House Claims Teams

Commercial motor brokers overwhelmingly prefer MGAs with in-house claims teams, with 94% believing they deliver a more responsive service than outsourced claims models, according to new research commissioned by Direct Commercial Limited (DCL).

The findings, based on polling of brokers across the wider commercial motor insurance market, highlight how claims handling standards and communication quality are becoming increasingly important differentiators as claims complexity, repair delays and customer service expectations continue to rise across the fleet sector.

The research revealed near-universal broker preference for in-house claims operations over outsourced or third-party administrator-led arrangements, with 94% of brokers surveyed saying in-house claims teams are more responsive.

That marks a significant increase from previous Direct Commercial Broker Barometer research conducted in late 2024, when 82% of brokers said they viewed in-house claims teams as more responsive than outsourced alternatives.

More than three-quarters of brokers surveyed (76%) also described in-house claims handling as either important or very important when selecting a commercial motor insurer or MGA.

DCL said the findings reflect increasing pressure on insurers to deliver faster, more transparent claims handling at a time when fleet operators are facing rising repair costs, vehicle downtime and growing operational disruption following incidents.

The research also highlighted continuing frustrations around outsourced claims handling models.

More than half of brokers surveyed (51%) said they often or very often struggle to obtain detailed and timely updates for clients when claims are handled through third-party providers.

The findings suggest brokers increasingly believe responsive claims handling and closer communication are becoming central to insurer selection, customer retention and long-term broker relationships.

The research also showed brokers overwhelmingly believe stronger communication between insurers, brokers and policyholders plays a critical role in controlling claims costs and improving customer outcomes.

More than nine in 10 brokers surveyed (93%) agreed that regular three-way communication between insurer or MGA, broker and policyholder is essential to controlling claims costs and retaining fleet clients.

Brokers also identified technology and transparency as major opportunities for improvement across the market.

Almost half of brokers surveyed (47%) said the single most valuable claims improvement insurers and MGAs could introduce in 2026 would be broker portals providing near real-time claim status updates.

“Claims handling has become one of the defining areas of differentiation in commercial motor because brokers and fleet operators increasingly expect speed, visibility and clear communication throughout the process.

“What this research shows very clearly is that brokers believe in-house claims teams deliver a more responsive and joined-up service than outsourced models, particularly when claims become more complex or operationally disruptive for clients.

“Strong three-way communication between insurer, broker and policyholder is also becoming increasingly important because better collaboration typically leads to faster decisions, improved customer outcomes and better long-term claims performance.

“At DCL, we have continued investing heavily in our in-house claims team because we believe dedicated expertise, direct communication and faster decision-making are critical to supporting brokers and fleet operators effectively in today’s market.”

DCL said the findings demonstrate how claims handling is becoming increasingly central to broker relationships across commercial motor insurance, with responsiveness, communication quality and operational support now playing a growing role in insurer and MGA selection.

To support that approach, DCL has expanded its programme of quarterly claims review meetings, bringing brokers, fleet operators and claims specialists together to review live claims files, identify trends and agree actions to help contain costs. The face-to-face and virtual sessions are intended to encourage open, granular discussion of claims performance while strengthening long-term partnerships through greater transparency and collaborative decision-making.