Commercial combined market faces tough reckoning
Commercial combined insurance is the foundation of many broking businesses, and the latest etrading data suggests the UK SME commercial combined market became steadily softer throughout 2025, with average premiums 2% lower year on year in Q4, the third consecutive quarter of rate decline.
The market conditions were a key concern for brokers attending an event in Manchester, held in partnership with DUAL.
Malcolm Cooke, MD of C&C Insurance Brokers, described the market as challenging, where brokers struggle to get a hold of underwriters on smaller risks, but larger ones are being aggressively pursued by multiple insurers.
John Batty, director of technical services at Bridge Insurance Brokers, agreed that the trend started at the beginning of 2025 with the arrival of new entrants in the North West, leading to a competitive impact on other insurers.
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Claire Leigh, broking manager at Abbott & Bramwell, described insurers as aggressively pursuing risks to win them.
Brokers also pointed out that underwriters are assessing risks as though they were still in a hard market.
Bally Singh, client director at Konsileo, warned that the fluctuations in appetite make it difficult for brokers to explain the rationale to clients.
Brokers expressed frustration with the service levels provided by insurers, particularly when it comes to etrade.
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Stephen Campbell, head of broking at Vista Insurance Brokers, highlighted that processing an etraded risk can sometimes take more time than a manual one.
James Baskeyfield, broking director at Howden Manchester, said that the increased appetite allows brokers to push for better cover, and with the savings clients are making, his firm is encouraging them to secure new or broader cover for their businesses.
Attendees were clear on one point – lower premiums are a positive for clients, but there is concern over the sustainability of pricing and the impact of the inevitable correction.
Commercial combined may indeed be challenging, but while brokers follow these rapidly evolving market developments, they are already looking over the horizon towards the consequences of actions that may make profit today, but will almost certainly result in client confusion and broker pain in the future.
