NIBA / Special Feature
Industry Set for Major Change
be something that would impact the profession within the next 10 years.
“This suggests many organisations aren’t positioned to navigate the implications of consolidation at present,” says Klipin. For brokers, there’s business opportunity – and risk – too. For those looking to grow in the next 10 years, having technology, systems and processes that can scale in an instant is key. For those hoping to sell their business, having robust and defined systems and processes that can be integrated into another business easily is going to be critically important. “A key risk that we need to guard against during periods of consolidation is decision making itself being consolidated, and critical voices and new ideas lost,” says Klipin. “It’s essential brokers keep prioritising their clients’ needs, and bringing that very real insight back into the boardrooms to help the insurance profession evolve to continue to meet the needs of clients in this period of significant change.”
Interestingly, however, only 59% felt they were prepared for this innovation, suggesting that while many can see what’s on the horizon, they lack the infrastructure, agility or collaborative frameworks to respond effectively. “The brokers who are successful over the next 10 years will be those who lead,” says Klipin. “As a profession, we need to play an active role – and we’re well placed to do so. After all, brokers are the people talking with clients and insurers every day, so that invaluable insight is essential to move insurance forward.” Key to bridging the gap will be investment in tech platforms, and a cultural shift that is far more open to innovation and experimentation than it ever has been. Creativity needs to come to the fore, and collaboration will be essential to create insurance products that genuinely work in 2035.
Over recent years, we’ve seen steady merger and acquisition (M&A) activity across the insurance sector, including brokerages. That consolidation is set to continue over the next decade, as organisations search for efficiencies, digital transformation and technological advancements. There are two schools of thought here. On one hand, consolidation presents an opportunity to access broader capabilities and investments. On the other, there’s a risk of independence being eroded, and customer service diluted. In our Ready or Reacting? Shaping the Future of the Broking Profession report, 69% of brokers believed industry consolidation was likely to disrupt the sector over the coming decade, but just 59% believed they were prepared for that change.
60 / INSURANCE ADVISER DECEMBER 2025
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