Etrade future lies in service and complexity
The annual Insurance Times Five Star Rating Report: eTrading provides insight into broker perceptions of digital trading, highlighting where the market’s focus is likely to shift in the coming years. According to the report, brokers’ views on digital trading platforms have changed over time, indicating a likely direction of travel for the future.
Broker Perceptions and Platform Preferences
Brokers continue to view extranets as a way to secure better pricing and differentiated coverage that software houses are not currently offering. Some 26% of brokers surveyed in the 2026 eTrading report reported that extranets provided better covers than software houses, up from 23% in the 2024 version.
At the same time, brokers saying the reason they used insurer extranets was because insurers encouraged it dropped from 32% to 27%, suggesting there was more acceptance from brokers that there were genuine benefits to using this system. However, this is often at odds with a broker’s desire to trade from their own system.
Shifts in Broker Preferences
The proportion of brokers solely using extranets fell from 25% in 2025 to 16% in 2026, while those taking a blended approach – using both extranets and software house systems – rose from 61% to 69%. When asked to pick a preferred route in the 2026 report, 54% favored software houses, 21% favored extranets, and 20% had no preference.
Brokers are becoming more savvy about utilizing multiple routes to manage their business effectively. The increasing importance of a broad, searchable marketplace is evident, with respondents citing a software house’s size of panel as important jumping from 37% in 2024 to 45% in 2026.
The insurance industry’s obsession with artificial intelligence has not disappeared, but the hyperbole of 2025 has been hit with a reality check. Broker expectations for AI’s utility have dropped sharply across non-trading categories in the past year.
Operational Benefits and Digitalization
Brokers are seeing core operational benefits from digital trading. UK commercial gross written premium stands at over £30bn, yet combined digital GWP across extranets and software houses is realistically around £2-3bn, meaning less than 10% of the market is currently digitally enabled.
Future Focus and Priorities
Brokers are no longer primarily asking for more insurers on panels or more product types. Instead, the focus has shifted firmly to insurance brokers and their underwriting appetite and service. The proportion of brokers citing a reduced referral rate on products as a priority rose to 44%, while those wanting a reduced decline rate climbed to 45%.
Closing the appetite gap is the next frontier. The proportion citing commission differentials as a factor surged from 15% to 25%, hinting that financial incentives from insurers could provide the nudge required to accelerate digital adoption further. As the market continues to evolve, managing complexity and service will be key battlegrounds in the future of eTrade, much like actuary Neil Bruce takes center stage in transformation efforts.
