As we count down to Broker Expo in October we caught up with Andy Talbot, director of broker, ATE & marketing at Arag, who asserts that while AI might not be “the future of insurance”, it will affect the future of everything, not least insurance.
Why should delegates come and visit your stand?
The need to protect clients against legal risks has never been greater, and we see that reflected in everything from how people are using our legal helplines to the demand we’re seeing from brokers for our products.
Just this year will see a host of new legislation, from the Employment Rights and Renters’ Rights bills nearing the end of their journeys through parliament to Martyn’s Law – the Terrorism (Protection of Premises) Act 2025 – passed in April.
This year will see employment law and tenancies updated to an extent that hasn’t been seen in a generation. While that’s good news for working people and those who rent their homes, it’s a lot for employers and landlords to keep up with, on top of running their businesses.
Arag has always set the standard for legal insurance products, but we really pride ourselves on supporting broker partners, whether developing schemes tailored to niche markets, product training or helping them to meet their regulatory obligations.
There has been a lot of talk about 2025 being a softer, more competitive marketplace; what advice do you give colleagues to help them gain an advantage when looking to close deals?
In a soft market, differentiation inevitably becomes even more important, but there’s also an opportunity to offer clients greater value and embed loyalty for harder times.
We’ve seen the longer-term benefits that brokers can accrue at this stage in the cycle before. Protecting clients against broader risks and giving them added, day-to-day benefits that they can make use of even if they never need to claim, can really pay dividends down the line.
Is AI all a load of hype; the future of insurance; or something in between?
While there’s obviously enormous hype around AI, there is also great substance and value in it. It’s not ‘the future of insurance’ but it will affect the future of everything, not least insurance.
Arag Law has given us an additional perspective. The legal world looks destined for greater disruption, but the potential benefits there are also huge. It’s impossible to ignore, but also foolish to do so.
As a group, Arag has been working on several AI-focused projects for years now and we’ve already seen returns on our early investment. It still seems as though we’re only at the start of this journey, but the destination is becoming clearer, and it’s very exciting.
Outside of AI, what do you see as being the biggest factor that will help sustain a successful UK broking market over the next five years?
Alongside the positive benefits that AI is bringing, the downside could also be very important for brokers. Often, people are amazed by the ‘intelligence’ but slightly turned off by the ‘artificial’.
The importance of trust, of human interaction and relationships, only looks set to grow. AI isn’t going to poach your client, but another broker who can use it might
Andy Talbot, Arag
It comes down to a factor that has always been critical to successful and sustained broking business, namely trust. Technologies will only become more sophisticated and frictionless, but it’s very difficult to imagine them building or replicating trust.
In fact, the importance of trust, of human interaction and relationships, only looks set to grow. AI isn’t going to poach your client, but another broker who can use it might.
Broker Expo is celebrating its 20th anniversary this year; what were you doing when you were 20?
We’re approaching Arag UK’s 20th anniversary too, and the run-up to our launch was quite a stressful time, so I remember exactly what I was doing when the first Broker Expo kicked off in Birmingham, all those years ago.
It may be hard to believe that I was over 20 myself then, so I’d have to dial back a little further to the early 90s when I was finishing up my degree in Plymouth and getting my first job in insurance, with a broker, right in the heart of the City of London. It was a very exciting time.
What are your expectations for the UK broker market next year, and how are you planning to make sure your business has a positive 2026?
I expect we’ll see the key forces influencing the broker market this year continue well into 2026. The soft market and the consolidation may ebb or flow a little, but the role of technology, pace of digital transformation and regulatory scrutiny are only going to grow.
Looking back over the past 20 years, it’s great to see how far Arag has come, but we certainly haven’t forgotten how we got here. The secret of sustaining success is not to take anything or anyone for granted.
So, while we’re investing heavily in technology, product development and delivery, a positive 2026 for Arag depends on the conversations we have with partners and other businesses in the market, what they tell us and how we act on it. Broker Expo has always been a great opportunity to have those conversations.
Arag is exhibiting at the Broker Expo at the Birmingham NEC on 9 October. It is free for brokers to attend, so sign up now by clicking here.
