Viewpoint - July 2025
An update from Chris Haggart, CEO
As we race into the third quarter of 2025, one thing is clear: nothing stands still. We are entering a new phase in the evolution of our sector - one shaped by a meaningful (and welcome) shift in tone from our regulators!
This quarter has been punctuated by long-overdue recognition from government and the FCA that the pendulum of compliance has swung too far, and that growth, access to the market, and proportionate regulation must take priority.
A Growing Voice for Brokers
The British Insurance Brokers’ Association (BIBA) took a firm and public stand in July, issuing a powerful open letter to the Chancellor ahead of her Mansion House address. They highlighted an alarming fact: just two new general insurance brokers were authorised in the first quarter of 2025, while a number exited the market.
This isn’t a footnote - it’s a warning bell. BIBA’s message was clear: over-burdensome regulation is threatening the viability and dynamism of our profession, particularly for smaller, regional brokers.
I commend BIBA for speaking with clarity and urgency. Their advocacy reflects what many of us have championed for some time: regulation must be smarter and more proportionate. After all, our sector employs over 100,000 people and contributes £100 billion to the UK economy. We must find ways to support its continued growth and prosperity.
Cyber Hits the Mainstream Media
The cyberattacks on M&S and the Co-op in recent weeks were a stark reminder that no organisation, however well-known or well-defended, is immune. These were not isolated cases. Across our network, brokers are reporting a marked increase in SME enquiries about cyber coverage, especially in retail!
Now more than ever, regional brokers must lead the conversation on cyber risk. We must position ourselves as educators, risk advisors, and solution-finders, not just policy distributors.
Insurance Still Resilient in a Stagnant Economy
While the UK economy continues to walk a tightrope between growth and recession, insurance, particularly personal and commercial lines, has remained resilient. We are seeing heightened competition as insurers fight to achieve top-line budgets. The soft market cycle puts added pressure on margins and demands resilience and discipline if brokers want to achieve growth.
Said growth must come from strong renewal strategies that protect retention and defend value, robust new business processes that prioritise early market engagement, and cross sell discipline - especially in underserved propositions like cyber.
In a world of new risks and real economic strain, partner brokers continue to do what they’ve always done best: serve clients with local knowledge, community strength, and a personal touch!
Until next time.
Chris