Direct Commercial Limited (DCL) has released its latest Broker Barometer, highlighting ongoing pressures in claims costs and technology adoption within the insurance broking sector.
The report indicates that while a majority of brokers continue to see claims costs rise, the proportion reporting increases has declined to 78% this quarter, compared to 91% a year earlier.
Despite this shift, broker sentiment remains divided, with many still experiencing upward pressure on claims expenses. The findings are based on broker perspectives across the market and do not reflect DCL’s own claims data.
The broader UK insurance market continues to experience the effects of social inflation, with rising costs of claims fuelled by increased litigation, higher jury awards, and broader definitions of liability.
The frequency of so-called “nuclear” and “thermonuclear” verdicts – where damages exceed £10 million and £100 million, respectively – has reached record levels, particularly impacting commercial auto liability and driving up both legal costs and premiums. These trends are expected to keep claims costs elevated through 2025.
Carl Cripps (pictured above), claims director at Direct Commercial, commented on the findings: “The numbers are unambiguous and market-wide: 85% cite communication as the biggest frustration and 68% point to poor tech utilisation behind it. Our focus at DCL is joining the dots – straightforward, face to face communication underpinned by the right tools.”
The Barometer also identifies persistent challenges in technology adoption, which brokers say affects the efficiency of communication with carriers. Communication was cited as the top frustration by 85% of brokers, followed by delays in settlement at 69% and limited data transparency at 46%.
Two-thirds of respondents, or 68%, believe that many providers are not fully leveraging technology to streamline the claims process, a shortfall that brokers link directly to communication difficulties.
In parallel, the UK insurance market has displayed softening conditions in 2025, with premiums across most lines declining between -11% and -20%. Motor insurance is an exception, where rates are still rising, though at a slower pace than in previous periods.
This environment has led to increased underwriting flexibility and broader coverage, but ongoing claims inflation continues to influence pricing, particularly in high-volume segments.
Brokers’ feedback suggests that when technology is under-utilised or fragmented, communication deteriorates, updates are delayed, and settlements take longer to finalise. In contrast, DCL reports that it emphasises clear and direct communication, supported by integrated claims technology, to maintain decision flow and transparency.
The report underscores that while some progress has been made in managing claims costs, significant challenges remain in technology integration and communication across the sector.
Broker sentiment suggests that further investment in digital solutions and process improvements may be necessary to address these ongoing concerns and improve the overall claims experience.
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