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UK insurance brokers aim to bounce back from unique challenges in 2020

16 April 2021 GlobalData

National insurance brokers in the UK are once again looking towards upselling, acquisition and marketing to grow their business and recover from an extremely challenging 2020, according to GlobalData survey data.

GlobalData’s 2021 UK Commercial Brokers Survey found that the three most popular growth strategies for national brokers (cross-selling/upselling, acquisition, and increasing marketing activity/web presence) all saw an increase in the proportion of brokers planning to employ them. In addition, 74.4% planned to expand their geographical footprint in 2021. National brokers are clearly hoping to increase business activity once the UK comes out of lockdown.

GlobalData insurance analyst, Yasha Kuruvilla, commented: “These appear to be wise strategies, mergers and acquisitions are always a theme when conditions are tough as companies look to consolidate. Increased marketing and web presence also appears to be a good strategy as consumers have been forced to move online throughout 2020 and into 2021.”

Fewer super-regional brokers are seeking to grow through cross-selling/upselling or acquisition, suggesting these firms do not have the capital for this activity. However, there was an increase in the proportion of super-regional brokers looking to develop expertise in a new sector, suggesting these would like to diversify their portfolios.

Kuruvilla adds: “Increasing your expertise and reaching out into new sectors is always a positive move. The more skills and knowledge you can offer clients, the stronger your position will be.”

There is also very little movement in the proportion of provincial brokers seeking to grow through cross-selling or increased marketing activity. The most telling revelation is that 17.6% fewer provincial brokers are seeking to grow their business in the next 12 months, compared to the beginning of 2020.

Kuruvilla notes: “Provincial brokers are focusing down on their existing business at the moment, and just planning to survive the pandemic” This sensible due to the tough economic climate, therefore retaining clients and staying afloat are understandable goals for 2021.

 

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