Hosking highlighted that “it’s a really difficult trading environment. Our respective teams have navigated some really difficult conversations together, both around challenging renewals and new business enquiries.” Off-sites have been instrumental in finding key industry areas to focus on, and for spotting more opportunities for the teams to work together.
Identifying where brokers require the most support, she shared that the unpredictability of the marketplace is the top challenge facing brokers today. “A lot of people say it’s a soft market,” she said. “But I’d say the thing is, it’s not even properly soft, it’s just very unpredictable. Therefore, brokers are really nervous about what’s going to happen with their renewals and where they’re going to pick up new business.”
There is a broad variety of issues impacting mid-market brokers operating in the UK market, and, for many, consolidation is the word of the day. Increased acquisition pressure from larger brokerages and private equity firms is constricting the market, reducing the number of independent brokers which can lead to reduced competition but also customer churn.
Meanwhile, regulatory pressures are another area of concern with mid-market brokers looking to comply with FCA regulations, especially around fair value, consumer duty, and conduct risk. The cost and complexity of meeting regulatory standards is often disproportionately heavy for mid-sized firms compared to their larger competitors.
Talent attraction and retention, meanwhile, remains an issue for firms of every size in the insurance market. However, smaller mid-market brokers face the added challenge of struggling to compete with their larger competitors on crucial considerations including compensation, career progression, and training opportunities.
When capacity is more difficult to find, brokers need insurer partners who can support them with more complex propositions, but even amid softer market conditions, the value placed on real expertise is unwavering. An intermediated market always comes back to the power of people and the relationships they form, Mallaby said, and, in a competitive environment, brokers have proven time and time again that they have long memories and they know who to turn for sustainable and realistic solutions, rather than just the cheapest option available for that year.
“Not all customers, especially in this segment, just want the cheapest quote,” Hosking said. “The economy is obviously very much top of people’s minds and they are price-sensitive, but they want that full-service proposition; from risk management all the way through to the claim side.”
Delivering value beyond price is mission-critical – and beyond the price tag there are many ways in which insurance companies can set themselves apart, including by emphasising their deep sector expertise. An advisory-led approach is critical as it enables insurers to offer value-add services whether in the form of active risk management or claims advocacy.
Brokers also place increasing value on insurers which can offer tailored, flexible solutions able to differentiate themselves where through bespoke cover design, flexible underwriting relationships, or creative programme structuring.
One area where brokers are actively seeking more support with complex product offerings is in the care sector, according to Hosking. This segment has long presented challenges, particularly around securing high-quality, sustainable underwriting capacity. Insurers have historically been cautious due to the high-risk profile of care businesses - whether it's care homes, domiciliary providers, or specialist services - making it difficult for brokers to place comprehensive, competitive cover.
"It's not an area you go into without a lot of technical expertise," she said, highlighting that care is a highly technical class of business with a myriad of regulatory, reputational, and operational exposures. Because of this complexity, many insurance providers tend to focus their efforts on more accessible, low-risk segments - launching industry verticals built around ‘vanilla’ risks that are easier to underwrite and scale.
However, truly differentiated propositions in the mid-market space require going beyond these standard risks. It means building solutions that address the nuanced and often bespoke needs of challenging sectors like care. This is where the value of specialisation and deep underwriting expertise becomes critical - not only in designing suitable products but also in supporting brokers with credible advice and meaningful capacity.
