It’s hard to deny that the last three years have been turbulent and with the UK entering a recession and inflation at a 40-year high, so is this really the right time to start up an insurance brokerage?
At Momentum, we have seen a huge amount of interest from people in the broking community who have recognised opportunities. In my opinion, there has never been a better time to start!
There are many reasons why people decide to start their own businesses. For some, the draw of being able to provide the service you know is right for your clients and the challenge of building an asset is compelling. Some take the leap when an event has impacted their lives which can trigger a shift in priorities and the desire to make a change.
A great example of this was during the COVID pandemic – despite the uncertainty, 2020/21 Momentum partnered with a record 18 new start-ups. The adversity faced was seen as an opportunity – and they read the signs perfectly!
- There is now a shift towards supporting local businesses
- There’s a shortage of talent in the insurance industry
- Consolidation continues to gather pace with many clients finding themselves attached to businesses they didn’t appoint
- Advice led services continue to thrive
- The hard market has resulted in business becoming more transient and valuable
Fast forward to the end of 2022 and a majority of those who joined Momentum during this period continue to thrive and enjoy the benefits of self-employment.
- Inflationary pressures and the continued hard market cycle will continue to influence premiums and earnings potential. Analysts suggest we have passed the peak in respect of inflation and while we will see a dip in the first quarter of 2023, inflation will remain high until the early part of 2024. This will provide enhanced earnings and an opportunity for those with the best broking support to win and retain business.
- Consolidation will continue to rumble along, coupled with an ongoing shortage of talent in the industry, larger brokers ability to provide a quality of service will be impacted. This will create change and uncertainty for those who work within the businesses affected and drive them and their clients to look for a solution that matches their needs.
- Salaries for those looking to move roles will continue to look attractive but will come with high demands from their new employers. As a result of the “Great Resignation”, it is estimated that around 1,000 client-facing brokers have moved employers in the last 18 months. This is a substantial shift of talent and clients they managed but the grass isn’t always greener, and there is now talk of the “Great Resignation” turning into the “Great Regret”
- The insurance industry has realised that there is a genuine alternative to PAYE and self-employment is within their grasp. There is no doubt that start-ups will flourish and they will slowly fill the void from consolidation. At Momentum our enquiry levels for 2022 are 55% up on 2021 numbers and despite the festive period being historically a quieter time of year things have changed in 2022!
The festive period is a good time for reflection and to set priorities for the year ahead. It’s been a challenging few years for us all, but we are lucky to work in a recession proof industry that provides a huge amount of opportunity for those who work within it.
If you have ever had the inclination to start your own business, then why not explore what it takes to make it happen. All enquiries are managed with complete discretion and with absolutely no obligation.
Interested? Contact Alistair Body on:
Email – email@example.com
LinkedIn – linkedin.com/alistair-body
Phone – 07458 052 678