Brokers Seek Faster Trading Systems
The latest eTrading research reveals how brokers are changing the way they trade digitally, with speed, flexibility, and access to more complex risks emerging as key priorities. Reporters based their findings on survey responses from over 750 brokers across the UK, examining how brokers are using eTrading and what they want from digital platforms.
Brokers are becoming less wedded to a particular route, with 69% now mainly using a combination of insurer extranets and software houses. This shift towards a more pragmatic approach to placement is driven by the need for efficiency and effectiveness in serving customers.
The research highlights the growing demand for digital trading to provide a genuine efficiency gain, with brokers wanting to use digital platforms where they deliver a better market view faster. Savan Shah, head of research, noted that brokers are not digitizing “for the sake of it”, but rather when it saves time, reduces duplication, and gets them to a better market view faster.
Some friction remains in the development of eTrading, including the fact that 68% of referrals still take a day or longer to resolve.
Brokers are taking a pragmatic approach to placement based on what delivers the best result for their customers. Mark Thomas, chief executive of Compare My Insurance, said his business uses Acturis to access multiple options for customers, but direct insurer platforms could become more attractive if they offered a more flexible journey and reduced question sets.
For insurers, this means competing not simply on whether they can offer a digital route, but on how effectively that route works for brokers. Aviva’s approach is ultimately “broker-led”, with the insurer aiming to support brokers regardless of their chosen placement channel.
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The survey found that 72% of brokers had requested an underwriting referral in the previous 12 months because a risk fell outside standard underwriting appetite. System-generated referrals were cited by 60%, while 59% had requested a referral for pricing flexibility or a rate adjustment.
Improving appetite clarity, data capture, and referral handling could have a significant impact on the overall trading experience. As the market continues to evolve, it’s likely that the next stage of eTrading will be defined less by whether a risk can be traded digitally and more by whether it can be traded digitally well.
For brokers, this means greater choice over how they access insurers, while for insurers, it means making those digital journeys faster, more flexible, and capable of handling increasingly complex risks. Reducing referrals – and making those that remain substantially faster – will be critical if eTrading is to continue expanding.
Aviva has expanded its mini-fleet acceptance criteria to support up to 20 vehicles at new business, rising to 30 at midterm and renewal. More than 30% of Aviva’s new business policies are now also taking modular covers, which can help mitigate the cost of living crisis.
The development of eTrading is not simply about putting more products online, but rather about providing a genuine efficiency gain for brokers. With the market continuing to evolve, eTrading will become an increasingly important part of how commercial insurance is traded.
