The managing director of Gauntlet Group has warned small and medium-sized directly authorised brokers against succumbing to pressure in the current soft insurance market.
Roger Gaunt (pictured) delivered the warning at the Gauntlet AR Network Conference at Headingley cricket ground in Yorkshire. He said aggressive pricing tactics and cut-throat competition were threatening brokers with smaller premium income levels.
“Our soft market approach has to be new business, new business, new business,” Gaunt said. “Gauntlet ARs can offer clients excellent premiums and coverage but can also go after the really attractive pieces of business that are out there themselves. We do not put any restraints on the size of business our ARs can place and are also expertly geared up to handle technical and complex risks.”
He said smaller directly authorised brokers typically lack agencies and market access, making their business vulnerable in soft market conditions. Their commissions erode as rates fall, undermining income they had during the hard market and potentially affecting retirement planning.
Gaunt said brokers with premium income under approximately £1.5 million faced particular risk.
Two former directly authorised brokers received awards at the conference. Roger Smith, of Smiths Insurance Brokers, won Team Player of the Year. Peter Norris, of Fulwood Insurance Services, who joined the network in 2024, received the New AR of the Year award.
Other awards went to Paul Howley of Gauntlet Select, David Bulmer of David R Bulmer Associates, Andrew Stubbs, Alpha Broker Services, and Nathan Waters of Waters & Co.
The network reported its strongest recruitment year and its conference drew 100 attendees.
“We are providing our ARs with all the extra ‘moves’ they require, to best defend their wicket – their book of business,” Gaunt said.
What are your views on Gauntlet’s message to brokers? Share your insights in the comments
