Briefing: Industry must pull together to tackle unsurprising record high broker stress

By Stuart Reid

While it was depressing to read the results of insurer Ecclesiastical’s Broker Wellbeing Survey, published in October 2024, the figures sadly did not come as a surprise.

The annual research revealed that 40% of the 250 brokers polled have very high or high stress levels – the highest proportion of brokers to report feeling this way since Ecclesiastical first started the survey back in 2019.

Although this stat will come as no shock to those that work within our industry, the figure itself remains shocking all the same.

It is important as an industry to take stock and work to identify why broker stress levels are so high. There’s not much we can do as a sector to combat stressed staff if we don’t understand the cause.

Estimates on how many brokers there are in the UK vary, but let’s say around 3,000 currently. The vast majority of these firms are small, with less than 10 staff.

Most of this demographic, therefore, will have no human resources (HR) department and no compliance team keeping them up to date with all the latest regulatory changes or giving them expert help.

These businesses will often have proprietors juggling a day job of looking after clients while also managing the backdrop of poor service levels from insurers and having to deliver faster and more innovative service themselves to cater to client expectations.

Don’t get me wrong – there are many smaller brokers that thrive due to their size, showcasing greater specialisms and nimbleness, for example. These firms can often give their larger counterparts a bloody nose in today’s competitive landscape.

But the stress of having to deal with fluctuating regulation over the past few years has been immense for brokers of all sizes – as Ecclesiastical’s survey proved.

Two-thirds (66%) of overall respondents cited the volume of regulation as the main contributer to broker stress, with this figure increasing to 68% for respondents that work at smaller brokers.

Drivers of stress

In today’s age where employers often promise to reduce or tackle staff stress levels and work-life balance is more than just an HR buzzword, Ecclesiastical’s survey pointed to heavy workloads remaining as the dominant cause of broker stress.

As intermediaries, we are ultimately reliant on others to provide us with the service we promise to our clients. When this service promise breaks down at some point in the value chain – through no fault of our own – clients, income and reputation are at risk.

Furthermore, with a pronounced labour shortage in our market – in addition to increasing costs associated with this labour – staffing and resourcing can pose a danger for inciting further stress. Around 37% of Ecclesiastical’s respondents confirmed this.

The ongoing consolidation in the industry has also had a marked effect. A very significant minority of the broking workforce are now working for companies they never chose, forced to embrace a different culture, working methods and demands. Some thrive in this environment, but there are those that find it all too much.

Raising the profile

Enough doom and gloom – is there anything here we can celebrate?

It is heartening to read that 82% of broker respondents “believe their broker is supportive of people with mental health issues”.

It is obvious that stress is being treated seriously by most companies, with flexible working options increasing, nearly half of respondents’ firms providing a confidential helpline and roughly a third having access to a dedicated mental health first aider. Good enough? No – but getting better.

What is great is that we are discussing this subject. Ecclesiastical should be thanked for the ongoing valuable research.

Working practices have changed so significantly over the past five years, amid a huge consolidation of the industry, insurer service dramatically reduced, significant labour shortages and a regulator that has changed so much so quickly.

It’s no wonder stress levels are so high.

However, it is up to us all – not just brokers – to address how we can bring about the change needed to make this industry one that is chosen by new entrants, rather than one people just fall into. That would certainly reduce labour shortages.