Modern commercial insurance brokers are facing significant challenges in 2025, as they adapt to changing market conditions and rising client expectations. Cynthia Beveridge, the global chief broking officer at Aon Commercial Risk, shared insights on these issues in a recent conversation with Insurance Business.
One of the main hurdles for brokers is the fluctuating market dynamics. Some sectors are experiencing a surplus of options, leading to lower prices, while others, like property-catastrophe and transactional liability, are seeing tighter conditions. Beveridge pointed out that in the transactional liability space, the demand for coverage exceeds what insurers are willing to provide, particularly after the events of 2024 raised concerns about risks.
Brokers now need to balance these opposing market forces. They must manage lower prices in some areas while dealing with limited supply in others. Time management is crucial, as brokers need to prioritize effectively and explore all potential options for their clients. Understanding the nuances of the insurance landscape, including policy wording and claims environments, is essential for building successful strategies.
The second challenge is keeping up with rapid technological advancements. With the rise of digital tools and AI, brokers must meet evolving client needs in an increasingly tech-driven world. Beveridge emphasized that brokers should expand their focus beyond traditional insurance products. They need to integrate capital management and legal expertise into their services to provide comprehensive solutions.
To stand out in a crowded market, Beveridge advised brokers to listen closely to their clients. Understanding unique concerns and developing tailored solutions is key. Innovative approaches, such as parametric insurance and alternative risk transfers, are gaining traction and can help brokers differentiate themselves.
Looking ahead, Beveridge sees growth opportunities in areas like cyber insurance, energy transition, and construction. These sectors not only require insurance but also strategic guidance to navigate emerging risks. As the landscape continues to evolve, brokers must remain proactive and creative in addressing their clients’ needs. Aon is taking steps to support this shift by offering educational resources to help clients adapt to changing market conditions.
In summary, the commercial insurance broking industry faces a challenging yet promising future. By embracing innovation and focusing on client needs, brokers can thrive in this dynamic environment.