First Underwriting exit a broker ‘blow’ in diminishing personal lines markets
First Underwriting’s exit from standard home and motor is a 'blow', say brokers seeking markets for personal lines.
As revealed by Insurance Age, First Underwriting confirmed its exit from standard home and motor on Thursday 16 March.
The managing general agent, which signed a five-year £1bn capacity deal with Accredited Insurance Europe in January 2022 for specialty products, will instead focus on specialist and commercial lines after the shift in strategy.
First Underwriting exit leaves ‘hole’
Jon Newall, managing director at start-up broker Prosura, which predominantly works in the SME space, said he had just signed up an agency with First Underwriting and the exit was a ‘blow’ to brokers in general.
As a commercial broker, we don’t have much volume in private motor. So having someone like First Underwriting is quite useful to a commercial broker. So there’s a bit of a hole.
John Newall
Newall said: “As a commercial broker, you tend to be on the Acturis platform, which for really vanilla motor is not great, although it is amazing at other things.
“As a commercial broker, we don’t have much volume in private motor, so we don’t have that many deals and agencies in place to have a wider footprint to cover every eventuality.
“So having someone like First Underwriting is quite useful to a commercial broker. So there’s a bit of a hole.”
Markets
However, Newall said he was looking forward to using the Bravo Networks soon-to-be-launched platform, which would open up a range of personal lines products for its members.
Prizm managing director Tony Robinson said there were so few insurers looking to write standard motor and home for brokers that MGAs have become a go-to market for cover.
However, MGAs doing standard personal lines were operating in a tough marketplace, frequently with unwilling backers.
“They’ve got to get a return on investment, but if they are getting single digit returns, why would you look to invest? It’s a shame and a state of affairs,” he said.
Appetite
Brokering CEO Stuart Randall said brokers had little appetite for standard personal lines, hence the lack of markets for vanilla home and motor.
Randall said: “We’ve got a broker who is involved in personal lines, but they do family fleets and classic cars. They’re holding their own and doing well.
“But most brokers shy away from it completely, unless connected. You’ve got to be a specialist broker these days on personal lines broking.
“People don’t want run-of-the-mill household stuff, and they really don’t want private car stuff off the street.”
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