The Evolving Landscape of Commercial Insurance Broking
The commercial insurance broking industry is under constant pressure from emerging risks and evolving client expectations. Cynthia Beveridge, Global Chief Broking Officer at Aon Commercial Risk, is at the forefront of this transformation. In an interview with Insurance Business, she outlined the two biggest challenges for commercial brokers in 2025 and how differentiation will determine who thrives in the years ahead.
Challenge #1: Navigating Divergent Market Conditions
The first major challenge commercial brokers face is navigating divergent market conditions. While some areas are softening due to abundant capacity, others – particularly property-catastrophe, transactional liability (TL), and excess casualty – remain hard. “In TL, for example, we don’t have the capacity our clients need,” Beveridge said. Brokers must manage downward pricing pressures in some lines while grappling with constrained supply in others. Effective time management and prioritization become critical in a softening market.
Challenge #2: Keeping Pace with Innovation
Technology is reshaping the industry landscape, introducing a second major challenge: staying ahead of client expectations in a digital-first, analytics-driven world. Brokers must think beyond insurance products and incorporate capital management, legal acumen, and broader business strategy into their value proposition. Aon’s cross-practice collaboration is one approach to delivering this multifaceted support.
Differentiation in Commercial Insurance
To differentiate themselves, brokers need to listen to clients and continually iterate solutions. Areas such as parametrics, captives, and alternative risk transfer (ART) are evolving from niche options to core insurance programs. “Parametric solutions are here to stay,” Beveridge said, citing the example of six clients receiving payouts in under four days after Hurricane Milton.
The Road Ahead
Looking to the future, Beveridge sees significant growth in areas such as cyber, AI, energy transition, construction, and natural resource management. Each brings not just insurance needs but a demand for strategic guidance. In the US, sectors like construction and tariff policy present ongoing complications. Brokers must keep presenting new options as they become more effective and popular.
By focusing on client needs, embracing innovation, and delivering multifaceted support, commercial insurance brokers can thrive in a rapidly changing market.
