The factors influencing business placement decisions have evolved significantly in recent years.
While relationships, expertise and market knowledge remain vital, brokers are increasingly being asked to evidence why a particular insurer was selected and demonstrate how those decisions support good customer outcomes.
At the same time, customer expectations are rising, regulators are paying closer attention to product governance, and insurers are operating in an increasingly competitive market.
These themes formed the basis of Insurance DataLab’s recent webinar, Business Placement in a Changing Market, featuring representatives from Allianz Commercial, Aviva, Brown & Brown, and BIBA. The discussion explored how placement decisions are evolving and what brokers should be considering when assessing insurer partners.
Watch the Webinar
Claims performance is becoming a key differentiator
One of the clearest messages from the webinar was the growing importance of claims performance in placement decisions.
As BIBA chief executive Graeme Trudgill highlighted during the discussion, claims handling is often the moment that defines a customer’s perception of both their insurer and broker. In a competitive market where capacity is widely available, the quality of the claims experience can be a powerful differentiator.
This was evidenced by research from our recent Commercial Lines Claims Pulse survey, which found that 78% of brokers lose trust in an insurer following a poor claims experience and 39% are less likely to place business with that insurer again.
In contrast, 95% would consider placing business again following a positive claims experience
The move towards evidence-based placement
The webinar also highlighted how placement decisions are becoming increasingly evidence-led.
Historically, brokers often relied heavily on relationships, experience and anecdotal feedback when assessing insurer partners. While those factors remain important, the introduction of Consumer Duty and greater scrutiny around customer outcomes has increased the need for objective evidence.
Brokers are now expected to demonstrate that insurers deliver:
- Strong claims outcomes
- Fair customer treatment
- Financial resilience
- Consistent performance over time
As a result, many firms are seeking more structured ways to assess insurer performance and support product governance requirements.
Product governance is driving change
Another major discussion point was the growing operational burden of product governance.
Brokers are now required to monitor and evidence fair value and customer outcomes across multiple insurers and products. This has increased the need for robust oversight processes and access to reliable insurer performance data.
Several panellists noted that these requirements are influencing how brokers structure insurer panels, with many firms becoming more selective and focusing on strategic partnerships with insurers that can consistently demonstrate positive outcomes.
The result is a market where objective performance data is becoming increasingly valuable for both placement decisions and regulatory compliance.
See how the Insurer Performance Index can support placement decisions
Insurance DataLab’s Insurer Performance Index was developed to help brokers build a more complete picture of insurer performance.
The Index combines data across four key pillars: claims, complaints, solvency and underwriting, providing a single, evidence-based view of insurer performance that can support business placement decisions, product governance activity, and customer outcome assessments.
Whether you’re reviewing insurer panels, evidencing placement decisions or strengthening your governance processes, the Insurer Performance Index can help provide the objective insight needed to make more informed decisions.
Request a demo today to see how Insurance DataLab can help your business assess insurer performance with greater confidence.