With surging demand for non-standard insurance, brokers are urging industry collaboration, warning that the gap in coverage is widening, according to a recent survey by Prestige Underwriting.
Despite this demand, one in five home insurance quotes are rejected by standard insurers or price comparison sites due to their inability to accommodate these non-standard risks.
This often leaves consumers without viable options, as there is limited or no referral to specialist providers.
In response, an overwhelming 88% of brokers believe mainstream providers should proactively direct these customers to specialist insurers or managing general agents (MGAs) who can meet their needs.
Moreover, the survey found that brokers are increasingly turning to specialist underwriters to place tricky risks. A significant 90% of brokers consider MGAs to be valuable partners in securing non-standard insurance.
This growing trend is highlighted by the fact that 42% of brokers now approach an MGA before a traditional insurer for such placements, which marks a significant shift towards specialist intermediaries, as brokers seek reliable options for homes and vehicles that do not fit standard underwriting criteria.
Alison Williams, Managing Director at Prestige Underwriting, commented: “Brokers are sending a clear message that as the non-standard market grows, we need to ensure no customer falls through the cracks. It’s encouraging to see such optimism and growth in specialist enquiries, but it is tempered by the concern that too many individuals are being declined cover outright.
“Brokers rightly expect insurers to step up with a solution. Simply turning non-standard customers away is no longer acceptable under a customer-centric approach.”
“At Prestige Underwriting, we have always believed in a collaborative solution. We’re already working closely with both brokers, insurer partners and other financial services firms to provide a seamless hand-off for those one-in-five clients who don’t fit the standard mould,” Williams continued.
Adding: “From partnering with major broker networks to integrating our specialist products on digital platforms, our focus is on making non-standard placement as straightforward as possible. We fully support industry efforts to introduce clear signposting for declined risks and we stand ready to help insurers ensure that every customer finds appropriate cover, no matter how unusual their insurance need.”
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