The Insurance Brokers Pulse-Point Tracker (PPT) – a COVID-19-focused industry confidence barometer says, “Two thirds of UK brokers (polled) believe the insurance profession has not reacted well to ensure consumers and businesses have the adequate cover to navigate the pandemic crisis.”
The barometer study conducted by FWD Research; an independent research agency, announced the results from the first wave of its study in early June 2020.
FWD Research senior research director Simon Staplehurst said, “When it comes to long term outlook, there were a number of ongoing concerns over the success of some of their customer groups, particularly across some micro and small SMEs and their own jobs, with a quarter of brokers feeling uncertain about job security. However, the survey finds only 1% of brokers have had to make redundancies and a third of brokerages have put staff on furlough.”
The survey revealed that commercial brokers have increasingly gained confidence in their companies’ trading future as the pandemic unfolded.
Mr Staplehurst said, “Business confidence for the long term focused more on business survival rather than anything else, particularly as brokers predicting that they could lose nearly a quarter of their new business GWP this year.”
In addition, brokers have expressed concerns over the Industry’s response and the support provided.
Nearly two thirds of brokers believe that the insurance industry has not reacted well to ensure people are covered. Nearly all brokers agree that all insurance wording need to be reviewed as a result of COVID-19.
Nearly all brokers believe that business interruption cover is important for their book of business. This becomes increasingly critical across larger brokerages.
The majority of brokers think that unoccupied premises wordings need an urgent review. Significantly more brokers have concerns over policy wordings from Lloyd’s of London and the London market than other markets.
The survey was based on 150 telephone interviews conducted across FWD’s broking panel throughout May and the beginning of June.
The second wave of insurance brokers barometer PPT will explore industry specific concerns around business change and challenges and will be conducted in June and July.