Maintaining profit throughout the UK insurance cycle is the hot issue for the year, with 83% of brokers believing it to be the greatest challenge, according to a new Lloyd’s report, “What British insurance brokers think”.

Two-thirds of brokers are concerned about the pace of regulatory change in the UK market, and 41% have tipped a downward trend for rates, as opposed to 29% who say rates will trend upwards.

According to 35% of brokers, employers’ liability is most likely to attract a rate increase and 41% think general and professional liability rates will decrease.

The formation of broker networks through consolidation of the market is ranked as the most significant trend forecast for the next three years. Large and small brokers expect to see consolidation at all levels, with mergers and acquisitions of smaller brokers most likely.

The report says 89% of UK brokers are taking an active role in tackling the issue of increased regulation and 77% are spending more time becoming internet-savvy.

Most brokers believe the industry has done an adequate job on the issues of client money and conflict management. However, 20% of brokers believe progress in contract certainty is insufficient and only 9% say it is adequate.