The commercial insurance market is continuing to soften and that means insurers and brokers need to step up to differentiate their proposition.
“Increased competition and ample capacity are creating a more aggressive marketplace, giving buyers significantly greater negotiating power,” said Sonya Bryson (pictured), managing director at RSA Insurance. “To remain relevant, insurers must move beyond pricing and demonstrate real differentiation through their value proposition.
“The winners in this market will be those who invest in strong partnerships, risk engineering support, and a culture of risk mitigation. There is more pressure than ever on service. Being accessible, responsive and flexible is no longer optional, but a necessity.”
Bryson highlighted that insurers will need to offer flexible terms, long-term deals, flatter rate reductions, and increasingly turn to AI and data analytics to stay efficient.
In today’s environment, insurers must stay ahead of emerging risks - especially cyber and climate-related exposures. “Cyber risk is no longer static,” said Bryson. “It is now a real-time exposure that demands continuous monitoring and potentially more frequent policy reviews.” She emphasised that underwriting will increasingly rely on indicators like multi-factor authentication and other markers of cyber maturity.
When it comes to climate, the shift is equally transformative. “Underwriters are moving towards more localised CAT modelling and granular risk assessments,” Bryson explained. “Geospatial and climate risk models are being integrated into underwriting tools to assess future exposures, not just historical loss,” she added.
ESG factors will also begin influencing underwriting decisions more directly: “ESG scores are starting to affect risk selection and pricing. Product innovation will be key, with new covers emerging to address previously uninsurable risks or to support green investments.” According to a report by ICAEW, the Institute of Chartered Accountants of England and Wales, “insurers are raising premiums for businesses with poor ESG performance and, in some cases, declining to insure assets or sectors considered unsustainable or exposed to high ESG risks, such as coal plants or properties in climate-vulnerable areas.”
With rate reductions continuing, brokers and insurers must double down on service quality and added value. “Insurers should invest in intuitive portals that make it easier for brokers and clients to submit, track and manage policies and claims,” Bryson said. “Data enrichment from third-party sources improves risk profiling while reducing the need for long forms and client admin.”
According to an online publishing from Inaza, “by consolidating data into a single platform, underwriters can access all necessary information in one place, reducing the need for manual data collection and entry.” This is believed to not only simplify the underwriting process but enhance the accuracy and efficiency of risk assessment.
Innovation in offerings is also shaping the landscape. “Digital platforms are enabling faster quoting, risk visualisation and collaborative underwriting,” Bryson highlighted. Flexible and usage-based policies are gaining traction - especially among SMEs and gig economy clients.
Bryson also emphasised the role of broker collaboration. “Providing value-added services, such as risk management support, allows insurers to differentiate beyond the policy. Strengthening broker relationships through collaborative pricing strategies and responsive service is essential.”
Long-term success will depend on how well insurers and brokers adapt. Bryson outlined a clear path forward: “Dynamic portfolio management is key. Insurers must constantly reassess the mix of risks they are taking on.”
Technological investment will also be critical. “Machine learning and digital underwriting tools will support more agile and intelligent decision making… Omnichannel strategies will help insurers reach brokers and clients more effectively in an increasingly digital market,” said Bryson.
