Why the broking sector continues to offer tremendous opportunities for the business leaders of tomorrow
27 January 2021
By Howard Pepper
Managing Director, Momentum Broker Solutions
Insurance broking is a dynamic industry; a relentless focus on service and value ensures that even in times of crisis, we remain relevant and valued by clients. We have built-in resilience – businesses need insurance, and the inability to commoditise our proposition in the commercial marketplace testifies to the value clients place on advice, support and dependable service.
Innovation is, of course, critical for our continued relevance. Big data will serve to reduce friction and unnecessary cost but will not replace the professional advice and bespoke service that the best of our industry provides.
How has COVID-19 and the economic downturn impacted our sector? As things stand, the pandemic appears to have done nothing to diminish the value of what we do and the value of our enterprises, with the broking world remaining vibrant, dynamic and remarkably robust. The latest FCA resilience survey shows that a little over half of the 3,370 respondents advised that the impact of the pandemic was either neutral or positive.
The pandemic has given people time to consider what they want out of life and business: taking control, setting their own agenda, benefitting from their own efforts.
Some would say now is the time for business owners to exit, citing the increased challenges provided by the pandemic, a hardening market, the cost of regulation and PI insurance, and potential tax changes diminishing value on exit. Nonetheless, the attractiveness of insurance brokerages remains very high. The natural cycle of build, grow and sell is very much alive but there is a different dynamic at play. The pandemic has given people time to consider what they want out of life and business: taking control, setting their own agenda, benefitting from their own efforts. For these reasons, we are witnessing a significant increase in insurance professionals looking to build their dream.
Taking advantage of new technology in an increasingly digital world and partnering with organisations providing great support enables them to build the brokerages of the future. Rather than contracting through consolidation or being battered by the pandemic, the resilience and enterprise of independent brokerages provide great optimism for the future.
The lessons we are learning through adversity will enable the business leaders of tomorrow to ensure the importance and prosperity of the insurance broking sector long into the future.