Brokers Are Focusing on Specialty, Says Ascend Research

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Insurance brokers are looking to expand beyond core products and advice to embrace a wider range of services, new research from Ascend Insurance Holdings (AIH) shows.

The study with insurance brokers across the UK found 85% expect the trend for insurance brokers to expand into services and products such as managing general agents, health insurance and employee benefits will increase over the next three years.

That includes more than one in eight (13%) who predict dramatic increases in the number of brokers expanding out of core services and products over the period.

It is a similar story with offering advice and support on specialty lines such as political risk and cyber risk cover. More than four out of five (83%) questioned expect this to increase over the next three years.

More than quarter (28%) are predicting dramatic increases in the number of brokers expanding their business into specialty lines over the period.

AIH, which is building a group of between four and six regional broking powerhouses across the UK with backing of up to £200 million, will potentially include a regional hub specialising in particular products as part of its expansion.

Matthew Collins, CEO at Ascend Insurance Holdings, said: “Insurance brokers are endlessly entrepreneurial and always looking for new ways to develop their businesses.

“The research underlines how they expect the sector to embrace niche or specialty lines and new services and products over the next three years.

“Brokers looking to expand would benefit from support from a national organisation which can address the business issues while ensuring brokers are free to develop their businesses.”

AIH is building a platform which removes brokers’ daily pain points and helps them win more and better business attracting top talent through targeted recruitment and mergers and acquisitions.

Group oversight will set strategy and common policies for the business with AIH running shared services such as IT, finance, compliance and internal audit. The new platform will support teams at brokers it acquires providing development opportunities within a larger group.

At AIH early partner firms will help shape how the group evolves – from culture and operating standards to growth priorities – while benefiting from enhanced capabilities, access to talent and technology, and the opportunity to share in the long-term value created across the wider platform.

AIH has identified a gap in the market facing entrepreneurial insurance brokers who want to expand their businesses but are wary about joining large firms which can be bureaucratic, give less autonomy and have a greater focus on bigger clients, with the result that service suffers.