Brokers urge industry to signpost non‑standard insurance as demand surges

Prestige Underwriting’s latest broker survey reveals brokers’ concern that surging demand for non-standard insurance is exposing a growing gap in cover, one they say must be closed through better industry collaboration. 

The survey found that over three-quarters (79%) of brokers have seen an increase in non-standard insurance enquiries over the past year, indicating a sustained rise in clients with unusual or complex needs. Yet as many as one in five home insurance quotes are now declined by standard insurers or price comparison sites because they can’t accommodate non-standard risks, with little to no referral to specialists, leaving many consumers without options. 

In response, an overwhelming 88% of brokers believe mainstream providers should proactively direct these customers to specialist insurers or MGAs who can meet their needs.

Brokers themselves are increasingly turning to specialist underwriters to place tricky risks. Nine in ten brokers rate Managing General Agents (MGAs) as valuable partners in navigating non-standard cover, and 42% now go to an MGA before a traditional insurer as their first choice for such placements. This marks a significant shift towards specialist intermediaries, as brokers seek dependable solutions for homes and vehicles that fall outside the usual underwriting appetite. 

Together these findings paint a picture of a market where demand is booming and brokers are eager to deliver,  creating a clear opening for non-standard specialists to lead the way. Rather than being constrained by traditional approaches, MGAs and niche underwriters are uniquely positioned to innovate with tailored solutions that meet the needs of customers who don’t fit the standard mould.

Alison Williams, Managing Director at Prestige Underwriting, commented: 
“Brokers are sending a clear message that as the non-standard market grows, we need to ensure no customer falls through the cracks. It’s encouraging to see such optimism and growth in specialist enquiries, but it is tempered by the concern that too many individuals are being declined cover outright. Brokers rightly expect insurers to step up with a solution. Simply turning non-standard customers away is no longer acceptable under a customer-centric approach.

“At Prestige Underwriting, we have always believed in a collaborative solution. We’re already working closely with both brokers, insurer partners and other financial services firms to provide a seamless hand-off for those one-in-five clients who don’t fit the standard mould. From partnering with major broker networks to integrating our specialist products on digital platforms, our focus is on making non-standard placement as straightforward as possible. We fully support industry efforts to introduce clear signposting for declined risks and we stand ready to help insurers ensure that every customer finds appropriate cover, no matter how unusual their insurance need.”

Prestige Underwriting remains committed to bridging the gap between mainstream insurers and specialist markets. As the non-standard insurance sector continues to expand, the company is investing in partnerships and innovative products to empower brokers and deliver solutions for complex risks. 

The survey’s findings make it clear that greater cooperation and flexibility across the industry will be key to meeting the evolving demands of non-standard customers and specialist MGAs like Prestige Underwriting are set to play a pivotal role in ensuring those clients are not left behind.