As brokers tend not to carry underwriting risk, many might assume that they will be largely unaffected by Solvency II. However, brokers are key providers of risk data and advice to underwriters and, in some cases, underwrite directly for their customers. With insurers facing sweeping changes in the way they manage their exposures and judge performance, brokers are bound to be affected in one way or another, some quite profoundly. This article examines the implications for three main areas: Reinsurance broking; direct broking and agency relationships; and captive management.
Roy Clark and Bryan Joseph look at the likely winners and losers.