New survey results from GlobalData show that UK insurance brokers are looking towards upselling, acquisition and marketing to grow their businesses and recover from the challenges of 2020.
GlobalData’s 2021 UK Commercial Brokers Survey found that the three most popular growth strategies for national brokers all saw an increase in the proportion of brokers planning to employ them.
Additionally, 74.4% planned to expand their geographical footprint in 2021, and national brokers are clearly hoping to increase business activity once the UK comes out of lockdown.
“These appear to be wise strategies, mergers and acquisitions are always a theme when conditions are tough as companies look to consolidate,” said GlobalData insurance analyst, Yasha Kuruvilla.
“Increased marketing and web presence also appears to be a good strategy as consumers have been forced to move online throughout 2020 and into 2021.”
According to GlobalData, fewer super-regional brokers are seeking to grow through cross-selling/upselling or acquisition, suggesting these firms do not have the capital for this activity.
However, there was an increase in the proportion of super-regional brokers looking to develop expertise in a new sector, suggesting these would like to diversify their portfolios.
“Increasing your expertise and reaching out into new sectors is always a positive move,” Kuruvilla added. “The more skills and knowledge you can offer clients, the stronger your position will be.”
There is also very little movement in the proportion of provincial brokers seeking to grow through cross-selling or increased marketing activity. Notably, 17.6% fewer provincial brokers are seeking to grow their business in the next 12 months, compared to the beginning of 2020.
Kuruvilla continued: “Provincial brokers are focusing down on their existing business at the moment, and just planning to survive the pandemic.”
