56% of insurance brokers describe stress levels in the sector as 'high'
- Brokers expect cyber insurance to provide biggest source of growth
- Large drop in the number of insurance brokers expected in the next three years
New research(1) from Premium Credit, the UK’s leading premium finance company, reveals around six out of 10 (56%) insurance brokers describe stress levels in the sector as ‘high’ – with 6% saying it is ‘very high’. Furthermore, the majority (56%) expect stress levels to rise over the next three years.
This might help explain why almost all (90%) of insurance brokers interviewed expect the number of intermediaries in the sector to shrink over the next year - with 16% predicting a ‘sharp’ decline in numbers. However, more than half (52%) put the fall in numbers down to the rising operational costs associated with being a broker, followed by 44% who say it’s down to many brokers approaching retirement.
Some 42% say growing competition from insuretech/tech companies are to blame, and 33% say it’s because clients are increasingly going direct to buy their cover.
Despite this, the findings, which are being released at the British Insurance Brokers’ Association (BIBA) conference in Manchester, reveal 86% of brokers say confidence levels within the insurance broker community are relatively strong - with nearly one in four (24%) saying they are ‘very confident’.
Less than a third (28%) expect confidence levels to increase between now and 2022, compared to 30% who think they will fall.
In terms of market growth for insurance brokers over the next three years, 72% said they expect this come from cyber cover, followed by 58% who said they expect growth in the commercial insurance market. Around a quarter (26%) expect to see growth in health insurance and critical illness, but only 14% expect to grow their consumer/general insurance business.
Nearly half (46%) of brokers expect their clients to make greater use of premium finance over the next three years, compared to 12% who expect a fall.
Adam Morghem, Strategy and Marketing Director at Premium Credit said: “Our research shows that many brokers are optimistic about their futures, but with so much change taking place in the industry, opportunities to grow often come hand in hand with increased levels of stress.”
Premium Credit is the market leader in the UK and Ireland and the only premium finance provider accredited by BIBA. To speak to someone at Premium Credit, CLICK HERE, leave a message and youTalk-insurance will pass your enquiry on.
1 PollRight conducted research with 50 insurance brokers in April and May 2019.
Premium Credit is the leading provider of premium finance in the UK and Ireland, and the only company endorsed by the British Insurance Brokers’ Association.
Premium Credit is authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. They serve over 2.2 million customers, process 26 million direct debits and receive advances of £3.4 billion.
For 30 years, Premium Credit has led the market through thought leadership, innovation and technology and have helped their partners offer finance compliantly to their customer through face-to-face, telephony and online channels.
Premium Credit continue to invest to ensure we provide a quality service and support that helps companies grow their business and commission. From the delivery of seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, Premium Credit are committed to growing the premium finance market.
Their Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.
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