Lloyd’s Sees Increasing Role for European Insurance Brokers

James Sutherland, who heads Lloyd’s Development & Strategy – Worldwide Markets, indicated that European brokers will play an increasingly powerful role in the European insurance market of the future.

Speaking at the Annual General Meeting of the European Federation of Insurance Intermediaries (BIPAR) in Lisbon, which Lloyd’s helps sponsor, he outlined three specific opportunities “which will benefit European brokers over the next two years:
• Impact of EU accession for the single insurance market
• Increased demand for specialist insurance products
• More European risks being intermediated as market conditions remain firm

“Soon the EU will consist of 25 nations, with a population approaching half a billion people,” Sutherland continued. “Europe will represent the world’s largest commercial market – and business opportunities for broking firms with an international focus can only grow.”

He singled out the recent increase in weather-related catastrophes and a shift in liability from the public to private sector. This, he said, would lead to increased demand for property catastrophe and professional liability insurance over the next two years.

Finally, commenting on current market conditions, Sutherland stated, “In today’s conditions, insurance buyers’ traditional direct relationships are fading, and finding cover can be difficult. Now, more than ever, brokers have a set of skills and connections that European insurance buyers desperately need, and many more risks are in the hands of intermediaries.”