Brokers should stop trying to “cover all bases” with a “scattergun approach” and instead work more closely with preferred partners, an underwriting agency principal says.

Underwriting Agencies Council Deputy Chairman and Lion Underwriting MD Kurt Nilsen says brokers need to pay more attention to underwriters’ needs in a hardening market – or risk missing out.

Providing a “personal view” on his company’s website, Mr Nilsen says underwriters are fed up with potential insureds engaging multiple brokers or multiple underwriting agencies to “cover all bases”.

“The issue from this approach is that most roads generally tend to lead into the same Lloyd’s markets,” he said.

“So the potential underwriter is seeing the same risk from multiple producers, sometimes with different information, to make matters worse.

“We have seen examples where underwriters have withdrawn from quoting altogether due to this approach, as they feel they are just getting used or price-checked.”

Mr Nilsen believes brokers would benefit from working with fewer “preferred partners”.

“I feel that brokers need to work closer with preferred partners, gain their trust and communicate more in general to meet their expectations.

“This might mean Lion Underwriting misses out on new opportunities, but… it might also mean we get to work closer with our supporting brokers to achieve more favourable outcomes.

“At the same time, we keep our underwriters onside by avoiding the ‘scattergun’ approach.”

Mr Nilsen says brokers need to take more care over applications, with “an incredible amount” of “very average” quote submissions coming in missing basic information.

“We do, of course, also see some excellent and very thorough submissions, [and] these brokers are going to get a much better result. Underwriters will put out their capacity to these risks before considering the ‘average’ submissions.”

He says in the current market, and with tighter restrictions on capacity, Lloyd’s syndicates can be “picky and choosy”.

“I wouldn’t say there is no capacity around, but it is tough and you have to manage the process properly.

“Brokers have to understand we are in a hard market and they have to work smarter.”