The commercial insurance market is splintering, and for brokers, the cracks are starting to show. Once-standard coverage terms are now shifting sand, and the result is a marketplace where no two carriers offer the same deal.
"Carriers are restricting coverage and modifying terms," said Dan Lau (pictured), chief operating officer at Robertson Ryan Insurance. That trend, he added, has turned placements into a minefield. “Often, one carrier might offer a specific coverage, only for the broker to find limiting exclusions built into the coverage form that do not satisfy the client’s coverage needs."
What used to be straightforward renewals now require strategic navigation. Brokers are increasingly turning to wholesale and specialty markets to stitch together policies that meet clients' needs.
"The placement process has become more difficult and time-consuming due to changes in renewal terms and reductions in coverage or capacity," Lau said. Even with proactive measures like early renewals and closer coordination, he sees these efforts as temporary. "We’re trying to get ahead of renewals... and wait for market stabilization."
Compounding the issue are legal reforms and macroeconomic uncertainty – especially the ripple effects of tariffs. But the most surprising slowdown, Lau said, comes from the small stuff: forms, certificates, and inspections. "It's a deeper issue," he said. As certificate-of-insurance vendors grow more sophisticated, they are flagging incomplete or unclear endorsements with algorithmic precision. And in many cases, the delays aren't insurer-driven but client-driven.
Today’s buyers want tailor-made policies that mirror their risk profiles. That demand for customization means longer timelines and closer scrutiny.
"These small details are increasingly driven by client demands for unique coverages to feel properly protected," said Lau. And the stakes are high. An overlooked form or misunderstood endorsement can expose brokers to E&O claims.
Balancing these client demands with carrier expectations for profitability and retention is an ever-present challenge. "We always try to put the client’s needs first – that’s who we serve," Lau said. But the economics of distribution remain. "We have to balance carrier demands for new business, retention, and profitability."
That balance becomes even more precarious as experienced brokers retire and younger producers step in. At Robertson Ryan, this is being addressed not with traditional mentorship but operational integration.
"We’re pairing less experienced brokers with seasoned ones who’ve handled complex cases," Lau said. The goal is dual: show continuity to carriers and clients, and pressure test new brokers. "We make sure the senior broker is visible in support, but we also push the new broker to the front lines to own the client relationship."
With the possible return of Trump-era tariffs, insurers and brokers face new underwriting unknowns. "It’s an unknown," Lau said. "Actuaries can't predict how tariffs will affect claims or the cost to replace items like vehicles or parts sourced internationally."
Larger accounts with deductibles and self-insured retentions are especially exposed. "We’re working to understand how tariffs might affect their deductibles, self-insured retentions, and overall insurance costs," he said.
For now, brokers must absorb complexity on all sides – regulatory, operational, and geopolitical – and do so with fewer seasoned professionals in the ranks. In this landscape, speed is not a luxury. It’s a survival skill. But as Lau pointed out, speed without precision is a dangerous game. "A missed form, a misunderstood endorsement, a mispriced policy – any of these can undo months of work."
