MGA criticises minimum GWP commitments as broker trading ‘barriers’

The topic of minimum premium commitment has divided opinion in the UK insurance industry, with some believing smaller brokers keen to grow accounts should not have to jump through premium commitment hoops to trade.

NBS Underwriting managing director Steve Cowman said: “At NBS, we believe in building long-term relationships and don’t look to place barriers in the way of brokers who wish to do business with us.

“Our data shows us that once brokers use our system and engage with our BDMs and underwriting team, broker volume grows organically very quickly.”

Minimum commitments can have the impact on brokers of ‘pressuring them to meet targets’, the MGA said, making life particularly hard for smaller brokers. 

Aqueous asks for commitment

Last month, Insurance Age reported how Aqueous Underwriting was asking for £25,000 minimum annual commitments on SME package.

Although brokers widely agreed it was an achievable figure, the introduction of the limits is something many brokers do not want.

NBS growing

NBS Underwriting has been active in growing its business proposition for UK regional brokers.

In September last year, it rolled out a combined package product and announced a capacity deal with Axa on non-standard household policies.

NBS, founded in 2011, has specialisms ranging across food & eateries, sports & social clubs, retail & petrol stations, combined liability/contractors, property owners as well as home and contents insurance household.

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