Schemes Data Highlights Most and Least Profitable Schemes for Brokers This Year

SchemeServe, a leading UK based InsurTech specialising in insurance schemes software, has released data from its first annual Schemes Premium Index, highlighting the most and least profitable schemes for brokers.

The Index spans 24 separate lines of insurance as currently managed on the SchemeServe platform during the period May 2018 up to the end of August 2019.

Based on the data, the most profitable lines were Excess of Loss, Employers’ Liability and Public Liability. The least profitable lines were Household and Caravan (although premiums for Caravan have been rising). Average premiums have risen most dramatically at renewal for Excess of loss and Caravan.

Public Liability offers the highest commission percentage at renewal at 22.3% up from 16.9% at policy inception. An average first premium for Excess of Loss Liability was £84.99 with renewals at an average £302.41. Brokers’ commissions also increased here from £15.52 at first placement to £52.69 at renewal, an increase of more than 240%, making this the most profitable scheme for brokers based on this data.

Data on Employers’ Liability schemes show that brokers earnt a little over double the commission (229%) at renewal, with renewal premiums averaging £963 up from the first premiums of £419. This makes it the second most profitable scheme for brokers during the period.

John Price, COO of SchemeServe, comments: “The increase of premiums at renewal on excess of loss could be driven by businesses growing and increasing the number of staff over the 1st year of trading. Those increases in staffing levels are reflected in Employers’ liability product figures as well. It’s well worth nurturing these businesses particularly when one

considers the commission increase. Excess of loss Liability appears to be a good news story for small businesses in the UK and brokers alike.”

In other highlights from the data, renewal figures on Cyber are surprising: commission rates are 20.1% at renewal up from 4.9% at inception, but despite this, of 170 policies sold a year ago, only two renewed and they renewed at a lower value.

Event Insurance too was notable. Last year the average first premium for Event Insurance was £84. This increased to £302.41 for this year. The average commission earned from these extra policies has also increased to double that of the previous year.

John Price continues: “The figures clearly show that Cyber policies are suffering widely. In my view this is because no one really understands the implication of having the cover. Often there is an element of Cyber cover in liability policies and people believe that enough cover is already in place. Some basic policies only cover the cost to fix the attack, but not the repercussions more widely of loss of trust by customers in businesses that suffer data breaches, for example. The profession needs to work much harder at explaining the high risk and balance the ‘it couldn’t happen to me’ thinking with the importance of having appropriate cyber cover in place. It needs to be very near the top of businesses’ lists of things they need, and not at the bottom as an afterthought.

“Event Insurance is an interesting one; we are ignoring Public Liability premiums here and looking just at insurance to cover the event risks, but nevertheless, the amount of insurance taken out to cover contingencies has shown a marked increase. We clearly like events as a nation and with a large increase in, particularly outdoor, events this year – it’s been a good summer for Brits and the brokers with Events Insurance schemes that serve them!”

The data comes from the first SchemeServe Index which will be an annual pulse check on the Schemes market. Established since 2001, SchemeServe operates more than £150m of gross written schemes premium for brokers, insurers and MGAs via its cloud based platform.

SchemeServe works with brokers, insurers and MGAs and has long been the platform of choice for those operating delegated authority schemes because it allows them to get schemes up and running in a matter of days and make any updates (rate changes, changes from regulatory demands, or launch new products, for example) quickly and securely.


For further information please contact: SJ Wrigley: or 07909 546104


About SchemeServe

SchemeServe is a leading cloud based provider of software to the insurance industry which has grown to operate more than 200 schemes and £150m of gross written premium per annum. SchemeServe is a white-labelled administration, distribution and underwriting SaaS solution for those operating delegated authority schemes business in both personal and commercial lines.

The company’s ‘Scheme Tailors’ are all experienced insurance professionals and using SchemeServe they work with brokers to design bespoke white labelled solutions for customers in double quick time.

The SchemeServe philosophy is Remarkable Schemes Made Simple.

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