National Insurance Brokers Association (NIBA) Vice President Nick Cook says pressure on insurer margins is a key issue for brokers to look out for next year. 

Speaking to NIBA’s Insurance Adviser magazine, Mr Cook also says he expects the continuing rise of underwriting agencies to “challenge” insurers. 

“There is continued pressure on insurer margins, and that’s leading to further reductions in broker commissions, or ultimately a withdrawal of a product from the broker channel,” Mr Cook said. 

“I expect there will be some pragmatic conversations across the insurers as to the best return for their deployment of capital, be it about the distribution channel and/or product.” 

Mr Cook says throughout 2023 there has been “a continued move by brokers towards underwriting agencies”. 

“Insurers will remain challenged by this move to underwriting agencies over the next few years as they come to grips with improving their technology, risk appetite and service levels.” 

But he sees opportunity for collaboration as insurers increasingly look to provide capacity for agencies.