In Partnership with

Tough market highlights the value of advisers

With insurance premiums soaring and uncertainty looming, industry experts weigh in on the key challenges facing mortgages and insurance today – and why good advice has never been more important

Hannah Walker

LV= General Insurance

Industry experts

Emma Green

Paymentshield

Hannah Walker has worked in the mortgage industry for over 12 years. In her current role of national sales manager, she heads up the regional account management team for LV= GI for Intermediaries, ensuring support for advisers nationwide. Hannah is also proud to be part of the steering group for the MIMHC (Mortgage Industry Mental Health Charter), which helps support our colleagues in financial services. Hannah is also focused on her own health and well-being and took part in the 2023 Tough Mudder challenge.

LV= General Insurance

Hannah Walker

Emma is director of distribution at Paymentshield, the market leader in the intermediated mortgage market. In this role, she oversees the business’s mortgage and financial adviser-related partnerships. Emma has worked at Paymentshield for almost 18 years, and is as passionate as ever about ensuring homes are properly protected.

Paymentshield

Emma Green

“There is a lot of talk around pricing in the market, and the biggest challenge that we’re facing is actually consumer and adviser education”

Emma Green, Paymentshield

IN A recent roundtable discussion, industry leaders Hannah Walker, national sales manager at LV= General Insurance, and Emma Green, director of distribution at Paymentshield, shared insights into the UK’s challenging insurance and mortgage markets. Both highlighted the pressures on premiums, the vital role of advice in consumer decision-making and the gradual but meaningful adoption of technology within the sector. They also discussed their outlook on the market for the year ahead, with both experts expressing cautious optimism despite the conditions.

“Advisers in this market are so resilient, and they’re in the best place to be able to reassure customers that they’re here for them”

Hannah Walker, LV= General Insurance

When it comes to technology, Green described the insurance industry as “slow” to catch up, especially when compared to other sectors that have fully embraced digital transformation. However, she acknowledged that there have been some positive developments, particularly in the way insurers set prices. She mentioned the introduction of “insurer-hosted pricing,” a system that allows for more precise underwriting and sustainable pricing across the board. This technological shift could help stabilise premiums over time, providing more consistent costs for consumers.

However, Walker was less optimistic about the insurance market, warning that ongoing economic and weather-related pressures could keep premiums high. “We don’t know what will happen weather-wise,” she admitted, noting that another season of intense storms could continue to drive claims and costs upward. For advisers, she emphasised the importance of maintaining open communication with clients about these challenges and helping them understand the value of comprehensive coverage. Green agreed that the outlook for first-time buyers appears promising, with competitive rates coming onto the market. However, she cautioned that broader trends, including the outcomes of the forthcoming budget, could influence consumer behaviour in both the mortgage and insurance markets. As for the insurance sector, she hopes to see a plateau in premium increases, but warned that if more insurers exit the market, the pricing dynamics could shift yet again. Both Walker and Green agreed that while the industry faces many challenges, advisers who prioritise education and personalized service will be well positioned to thrive. As Walker put it, “Advisers in this market are so resilient, and they’re in the best place to be able to reassure customers that they’re here for them.”

Client thumbs up for Evaluations Satisfaction after service online

It’s no secret that the insurance market has been tumultuous over the last year, particularly with regard to rising premiums. Green pointed out that the average insurance premium has jumped by nearly 39 per cent year on year, driven by a combination of economic pressures and an increase in costly weather-related claims. “There is a lot of talk around pricing in the market, and the biggest challenge that we’re facing is actually consumer and adviser education,” Green noted. She highlighted that there has been a massive surge in weather-related claims, with three huge storms over the course of three months in 2023 resulting in around £547 million in claims.

Walker noted the improvements in the adviser experience over the past decade, pointing out that LV= General Insurance now leverages big data to drive more sophisticated pricing models. For advisers, this means they can be confident that the quotes they provide are based on the most up-to-date information available. Although technology in insurance has been slow to evolve, these advances are beginning to streamline processes and enhance the customer experience.

Property insurance payouts: Q2 2024

“Q2 this year has been the fifth consecutive quarter in which weather-related claims have been over £100 million,” Green said. “That’s really having an impact on the premiums that customers are seeing, regardless of whether they’ve had a claim or not. When that renewal letter lands on the doorstep, it can be a shock. There have also been economic pressures – inflation, construction costs, etc. That has affected the cost of claims.” Walker echoed Green’s concerns, adding that the frequency of catastrophic weather events has only compounded the issue. She referenced a recent statistic from the Association of British Insurers (ABI) to illustrate how tight margins have become. “For every £1 that an insurer brings in, they’ll actually pay out £1.22 in claims and expenses,” Walker explained.

“That’s where good advice and good intermediaries really come into their own.” Walker added that a good adviser should go beyond just selling a policy. Instead, they should focus on understanding each client’s lifestyle and unique risks. “You’ve likely sat in their front room and had a chat – look around you. Do they have dogs? Do they have expensive bikes? Do they go on holiday frequently?” she asked, emphasising the need for tailored insurance plans. “Statistically, you’re more likely to claim on something like an iPad dropped into a pool, so you can make sure they have that in place.” Walker said that a good referral network is often crucial to get the best outcomes for customers, as advisers can’t always handle every matter or product themselves. It’s not a case of “If I can’t do it, then you’re on your own and you can go to comparison sites.” Instead, she encourages advisers to build a solid network and process, so that they have the option to refer. Green added that as advisers become increasingly busy, having referral options will be a great asset for their business – and ultimately, will ensure that customers are better protected.

Read on

The roundtable finished with a little crystal-ball gazing, as both experts gave their views on where they see the market going. Walker expressed optimism about the mortgage sector, forecasting a rebound as interest rates drop and consumer confidence grows. “Interest rates are dropping, and it looks like that will continue,” she observed, adding that major lenders expect rates to stabilise between 2.5 per cent and 3.5 per cent. Lower rates are likely to draw more buyers into the market, which could present new opportunities for mortgage brokers.

At LV= GI for Intermediaries we believe outstanding people deliver outstanding service, and that powers performance for you and your business. But it's our combination of people and technical capability that delivers better results for everyone. LV= is part of the Allianz Group and one of the largest personal line insurers in the UK. We offer a range of General Insurance (GI) products to intermediaries and work hard to make GI simple and straightforward for your clients, while making it as easy as possible for you to do business with us. Because we know you'll always have your clients' back, we'll always have yours.

Find out more

Paymentshield is one of the UK’s leading insurance providers, enabling financial advisers, rental platforms and other organisations to offer quality insurance to their customers. Through its proprietary Adviser Hub platform and API-capabilities, Paymentshield makes general insurance easy and seamless – allowing distributors to effectively embed insurance within their customer journey. Working with some of the best-known insurers in the UK, Paymentshield offers a range of insurance and protection products for homeowners, tenants and landlords. Based in Southport, Paymentshield has more than 30 years’ experience and employs more than 250 people across the country.

Find out more

In Partnership with

M&A Insights 2021

Insurance Business America uncovers the answers to brokers’ biggest questions about mergers and acquisitions, with expert insight from MarshBerry, Baldwin Risk Partners and Relation Insurance

Read on

Timothy J. Hall

Relation Insurance

Gerard Vecchio

MarshBerry

Industry experts

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec. Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.

Mashberry

Gerard Vecchio

Relation Insurance

Timothy J. Hall

In Partnership with

M&A Insights 2021

Insurance Business America uncovers the answers to brokers’ biggest questions about mergers and acquisitions, with expert insight from MarshBerry, Baldwin Risk Partners and Relation Insurance

Read on

Timothy J. Hall

Relation Insurance

Gerard Vecchio

MarshBerry

Industry experts

Relation Insurance

Timothy J. Hall

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec. Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo or24ci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.

Mashberry

Gerard Vecchio

Consumer demand and rising premiums

Published December 2, 2024

Amount paid in claims

£1.4 billion

Source: Association of British Insurers (ABI)

Increase on Q1 2024

Average payout increase on Q1

16%

Premium trends: Q2 2024

Average rise in premium, up 6% on Q1

£396

Source: Association of British Insurers (ABI)

Average premium increase from 2023 for a combined policy

19%

Amount insurers paid in claims for every £1

£1.22

“If you look at that as a business model in isolation, a company will struggle to run like that. That then results in the premiums that come out for consumers. At the end of the day, an insurance company has the responsibility to be there for customers when the time comes.” This all comes back to the importance of adviser and customer education. Advisers play an essential role in helping clients to understand why their premiums are rising, and why appropriate coverage is essential.

Predictions for the year ahead

In discussing the role of advisers, both experts emphasised that professional guidance is more valuable than ever. Due to inflationary and cost-of-living pressures, more customers are tempted to cancel or downgrade their insurance – a move that can leave them vulnerable to losses. “We see so many stories in the press of people crowdfunding because something has gone wrong, and some really terrible stories around customers who just didn’t have the right cover,” Green said.

The value of good advice in tough economic times

A steady technological transformation

Sitemap

Newsletter

About us

Authors

Conditions of Use

Terms and Conditions

RSS

E-mag

Jobs

Events

White papers

Bridging

Buy-to-let

Commercial

Equity release

Residential

Second charge

Interest rates

Growth

Guides

Market trends

Opinion

Technology

Resources

News

MORTGAGE TYPES

Best in Mortgage

Mortgage Industry

RSS

Sitemap

Terms & Conditions

Conditions of Use

Authors

About us

Newsletter

Resources

MORTGAGE TYPES

BEST IN MORTGAGE

MORTGAGE INDUSTRY

News

RSS

Sitemap

Terms & Conditions

Conditions of Use

Authors

About us

Newsletter

News

MORTGAGE INDUSTRY

BEST IN MORTGAGE

MORTGAGE TYPES

Resources