Growth in demand for non-standard insurance is exposing gaps in cover that brokers say must be addressed through better industry collaboration, according to new research from Prestige Underwriting.
The broker survey found that 79% of respondents had seen an increase in non-standard enquiries over the past year, with one in five home insurance quotes now declined by standard insurers or price comparison sites. In many cases, these customers are offered no referral to specialist providers, leaving them without cover.
Brokers believe the mainstream market must do more to prevent this. Almost nine in ten said insurers should signpost declined customers to MGAs or niche underwriters who can accommodate complex or unusual risks.
SHIFT TO SPECIALISTS
Prestige Underwriting reported that brokers are already changing their approach. Nine in 10 see MGAs as valuable partners in placing non-standard risks, while 42% now go to an MGA before a traditional insurer when dealing with such cases. Prestige said this represents a significant shift towards specialist intermediaries who are able to design tailored solutions for homes and vehicles outside standard appetites.
Alison Williams, managing director at Prestige Underwriting, said: “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.”
Williams added that Prestige is already working with brokers, insurers and networks to integrate specialist products on digital platforms and support industry efforts to introduce clear signposting.
GROWING MARKET
Prestige said demand is booming for non-standard cover and predicted further growth as specialist MGAs step in to fill the gap left by traditional approaches. The company is investing in new partnerships and products aimed at making non-standard placement more accessible, while urging wider industry cooperation to ensure that customers with complex risks are not left behind.
The survey findings highlight both the opportunity and the challenge ahead: a fast-expanding market where collaboration between mainstream insurers and specialist underwriters will be essential if brokers are to meet client demand.
