Brokers must play the long game to build trust and resilience

“Brokers and clients should maintain discipline and not prioritise short-term pricing gains at the expense of long-term market stability,” urged Sophie Forsyth, underwriter for fintech and financial institutions at Markel International, talking to AIRMIC Today.

As the cyber and financial institutions markets stabilise in 2025, Forsyth highlighted the need for a more measured, strategic approach.

Warning against what she called a “flight to the most aggressive terms”. which could ultimately “undermine the sustainability of coverage and service quality”, she instead advocated for “a balanced approach that values consistency, clarity of cover and the strength of insurer partnerships”.

After years of rate reductions, the market is slowing. “Moving into H2 2025, we anticipate a deceleration in this trend as the market begins to stabilise,” Forsyth said, noting that this is an opportunity for stakeholders to focus on long-term resilience over short-term gains.

Standing out 

As the market becomes increasingly competitive, Forsyth believes proactive engagement will emerge as a crucial differentiator. 

"The most successful brokers are those who maintain proactive, year-round engagement with their clients and insurers. Early outreach ahead of renewal is critical so that communication is clear between all parties and they can come to a satisfactory conclusion for all," Forsyth advised.

In this high-churn environment, trust and continuity are key to navigating broker of record battles and aggressive marketing tactics.

However, cyber risk remains a top concern, especially for SMEs. 

For Forsyth, the role of insurers extends beyond offering policies: “Our cyber insurance offering includes complementary crisis management support, which policyholders can access immediately if they suspect or experience a breach.”

Markel also equips SMEs with cyber training resources and a dedicated risk management toolkit. “These tools are designed to enhance awareness, improve security posture and reduce the likelihood of claims,” she explained. 

This dual focus on prevention and recovery underscores the evolving responsibilities of insurers in a complex threat landscape.

 “The most successful brokers are those who maintain proactive, year-round engagement.”

Adapting to AI-driven threats

The rise of AI-powered cyber threats has prompted a shift in underwriting strategies. Forsyth said, “While traditional risk models remain relevant, they must now be enhanced with real-time intelligence and adaptive analytics.”

Tools providing “real-time visibility into the cyber posture of our insureds and prospects” will enable more dynamic risk assessments. 

“It’s a shift from static risk evaluation to a more continuous, intelligence-led approach,” Forsyth said, adding that this proactive stance was essential in anticipating and mitigating emerging risks.

The power of partnerships

“In today’s environment, a truly effective broker-underwriter partnership is built on transparency, responsiveness and shared ambition,” Forsyth observed.

These partnerships thrive on alignment around client needs rather than short-term transactions.

Forsyth recalled the last hard market: “While others pulled back, we maintained a stable underwriting appetite and were able to step in and provide solutions, often at short notice.”

This stability extends to pricing strategies: “Rather than apply steep premium increases when a client reaches a certain size, we aim to grow with them, adjusting premiums gradually and proportionately as their risk profile evolves,” she said.

Forsyth anticipates future discussions centring on resilience, innovation and transparency, with key topics including the implications of AI, blockchain and mandatory reimbursement requirements under the ‘faster payments’ regime.

“These topics reflect a broader shift towards resilience, transparency and innovation,” she said, emphasising the need for insurers to provide more than coverage. 

“Clients can expect to see continued innovation, but also consistency. That balance between agility and stability is what allows us to support clients through change while maintaining the trust and reliability they’ve come to expect,” Forsyth concluded.

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