At this year’s British Insurance Brokers’ Association (BIBA) Conference, CEO Graeme Trudgill highlighted the regulatory, political, and technological developments expected to influence insurance brokers in the coming year. Trudgill reflected on the fact that the FCA made it clear that we’re entering a “new era of regulation” for insurance intermediaries, one where operational resilience, financial hygiene, and governance aren’t just hygiene factors but regulatory priorities. In this climate, the question is no longer whether you can afford to fix your operational inefficiencies. The question is whether you can afford not to.

As we look ahead to 2026, with topline growth stable but slow, broker margins depend increasingly on brokers’ ability to drive internal efficiencies and tighten operational control.

Yet for some brokers, the greatest threats are still internal, and invisible until they reach a critical point.

Unallocated cash often stems from legacy migrations and reconciliation issues, poor data hygiene, or a lack of process alignment between technical and Insurance Broker Accounting (IBA) teams. These issues may not make headlines, but if left unchecked over time, they quietly accumulate into material financial risk. And in a tightening regulatory climate, they also raise red flags for auditors and watchdogs alike.

Tens of millions in Premium is Unallocated

In one broker cash project we advised on, over 7,900 transactions were identified, involving premium and claims funds spread across more than 100 clients and insurers – with no single value assigned, only mounting complexity. In another case, we supported a broker with £30 million in aged debt and unallocated cash, tied up in more than 70,000 transactions.

As re/insurance businesses grow, merge, or undergo system migrations, the volume of unmatched transactions tends to grow, not shrink. And the effects are cumulative: older records become harder to trace, skilled resources become scarcer, and legacy data becomes increasingly unreliable.

These numbers aren’t outliers; they’re emblematic of the systemic nature of the problem.

Without robust controls and dedicated reconciliation strategies, the backlog grows – not just in volume, but in regulatory exposure, client trust, and missed commercial opportunity.

Many brokers face common root causes: incomplete remittance data, manual reconciliation processes, staff turnover eroding institutional knowledge, and a lack of standardisation across accounting and reporting practices. The knock-on effect is a build-up of cash entries that cannot be easily applied or explained, impacting liquidity and creating operational drag.

Turning Risk into Opportunity

Despite the complexity, there are encouraging signs of progress. Best practice across the market is evolving to tackle unallocated cash more proactively and holistically. A number of brokers are taking steps to embed systematic solutions, combining data interrogation, governance, and process transformation.

A successful approach typically begins with securing access to historical data and integrating technical accounting insight into cash reconciliation workflows. Leveraging cross-functional teams spanning finance, technical and IBA operations, and credit control is critical to developing a full picture of both the causes and solutions. Prompt query resolution and the use of data-matching tools are increasingly standard, especially when dealing with legacy ledgers.

Structured reconciliation programmes, especially those that incorporate digital tools and project management oversight, can transform what might seem like a burdensome clean-up exercise into a value-enhancing activity. Brokers who have implemented robust IBA protocols and introduced straight-through processing technologies are now reporting measurable improvements in matching rates and operational transparency.

A Future-Proofed Approach

The industry is moving away from fire-fighting legacy issues and towards building resilient systems. Preventative strategies include the standardisation of broker bordereaux and client remittance formats, automation of routine matching, and regular monitoring of aging cash positions. Where once the issue was tackled intermittently, leading firms now treat cash allocation as a continuous improvement process, not a one-off fix.

Importantly, brokers that address their unallocated cash proactively are better positioned to unlock trapped capital, improve reporting accuracy and strengthen client relationships. They also significantly reduce the likelihood of costly remediation projects in the future.

Technical cash management may not be the most headline-grabbing topic in insurance, but its importance is growing fast as a hidden emerging risk for the sector if not proactively tackled. It’s time to close the cash black holes, and close them for good.

Can we add a market-wide estimate? Pro Global estimates there is over £500 million and counting in unallocated cash across broker balance sheets? We have made some estimates in the past – source of $60 million: https://pro-global.com/millions-in-unallocated-premium-sitting-on-re-insurers-books/

From wrangling messy data to navigating ethical minefields and regulatory twists, insurers making real progress are the ones getting the basics right. We caught up with Toby Fennemore, Solution Architect, Pro Global to find out how the smartest players are building momentum, and where the rest risk falling behind. 

How are insurers tackling data quality, regulation and ethical risks with AI? 

Toby: “AI is making headway in allowing us to transform the data into a common format from unstructured data, which is a significant problem in insurance, in order to fully leverage the capability we have to be realistic and map the as-is process and what we can do to streamline the need for data transformation . Insurers have made progress by focusing on data cleansing and structure before applying AI.  

But deep-learning models, Generative AI and LLMs add complexity – they’re not always transparent, and that’s a risk when you’re dealing with personal data. Ethical use, regulatory compliance, and model explainability are not nice-to-haves – they’re non-negotiables. The firms getting this right are those treating data quality and governance as strategic priorities, not IT problems. AI is also an environmental challenge, business need to make sure they understand the impact of their AI initiatives on the Environmental side of their Environmental, Social and Governance (ESG) policies “ 

Q2: What’s the smartest way to approach AI in 2025 and beyond? 

Toby: “Understand your processes before you digitise them. Delivering with AI is knowing what you want to solve. That means starting small, testing assumptions, and being crystal clear on how success will be measured. It also means investing in the boring stuff – clean data, consistent workflows, and good change management. Without that, AI is just smoke and mirrors. AI can’t solve bad processes, just do them faster. That said, the biggest gains will come from running two tracks in parallel: a disciplined, process-driven approach and a tech-minded, agile experimentation model. Alongside well-governed AI projects, insurers should also be running smaller, investigative AI pilots. Even when these fail, they offer huge value through insight – accelerating iteration and innovation. Controlled failure becomes one of your most powerful learning tools.” 

Q3: Is there a gap growing between AI adopters and AI leaders? 

Toby: “Absolutely. There’s a gap widening between those using AI and those who are embracing it at will. AI is becoming a central theme to Insurance Conferences, and those who are agile, experimenting with AI for both directed use case and R&D, will accelerate their business above those who aren’t. We need to be more tech-minded and embrace failure as a way to learn. Those companies who embrace AI and agile experimentation, will gain a wealth of data and knowledge of the best foot forward, while those still deliberating will be left behind.” 

Whether you’re AI-curious or already deep in the weeds of model governance and data pipelines, one thing’s clear: the insurers winning with AI aren’t waiting around for perfect conditions, they’re building the right foundations, failing fast, and learning faster. 

Find out more about Pro Global Digital Services.  

Q1: What are the key opportunities you see in the underwriting support market right now?

“The market is ripe for a strategic rethink around underwriting support. One major opportunity lies in moving beyond traditional, transactional models of tactical resourcing; what some still call “body shopping.” Today, the focus is on deploying scalable, onshore expertise that not only fills resource gaps but also drives process optimisation and operational resilience. MGAs, especially, are growing fast and require flexible, multi-class, multi-territory support that combines strong technical knowledge with operational agility.

Q2: What challenges do you think insurers and MGAs face regarding underwriting talent and support functions?

“The biggest challenge is the talent squeeze. Experienced operational support for underwriters – including underwriting assistants, bordereaux analysts, exposure management and credit control experts is in short supply, and both traditional insurers and fast-growing MGAs are competing for the same pool of professionals. This in turn is driving up costs and staff attrition, leading to a continuous cycle of recruitment and training, distracting teams from being able to think more long-term and strategically about evolving their operatig model sustainably. Many MGAs offer flexibility but lack mature support structures, which can limit operational effectiveness. Another challenge is that underwriting teams need more than administrative help, they need empowered, informed support that understands their business nuances and helps remove bottlenecks. Also, offshoring often falls short for underwriting functions due to time zone, expertise, and continuity issues. That’s why we champion onshore, people-centric support models backed by strong operational governance, such as TUPE (Transfer of Undertakings Protection of Employment) arrangements, to maintain continuity, retain knowledge, and improve resilience.

Q3: How is Pro Global innovating to address these challenges and future-proof underwriting operations?

“We take a holistic, people-first approach to underwriting support. This means structuring support teams around consistency, accountability, and continuous upskilling. We embed operational best practices, standardise procedures by line of business, and ensure clear task ownership so underwriters focus on decision-making rather than chasing admin. Our experience with TUPE transitions shows how thoughtful change management can stabilise teams, boost morale, and create a foundation for ongoing optimisation. We also integrate technology enablement, automation and data improvements, to reduce manual dependencies and free up skilled staff for high-value activities. Ultimately, by combining human expertise with technology and strategic resourcing, we help clients build underwriting operations that are scalable, resilient, and ready for future growth.”

Ultimately, our extensive market experience and exposure to multiple different operating models working with leading insurance businesses gives us a unique insight into “what good looks like”. We harness that knowledge and perspective to challenge a clients’ traditional model and to help them embed a best practise / optimised approach to delivering the successful outcomes they are focussed on achieving.

Thanks for your time, Shayne! If you want to learn more about Pro Global’s Underwriting Services, get in touch: getintouch@pro-global.com

Consolidation Is the Word of the Day

The majority of public sector organisations we spoke to are actively reviewing and consolidating their claims systems. Whether driven by cost control, complexity, or compliance, there’s a clear appetite to rationalise fragmented legacy systems and build more connected, agile, and future-ready infrastructures.

However, choosing the right solution remains a challenge. With a crowded tech landscape and rising scrutiny over procurement spend, many delegates expressed the need for trusted guidance on how to invest wisely – balancing automation with human expertise.

Collaboration Is Gaining Ground

We also heard encouraging signals around greater collaboration between councils, insurers, and suppliers, from shared service models to joint risk pools and integrated claims partnerships.

The benefits are compelling: more consistent handling, lower administration costs, and real-time visibility of data across stakeholders. Technology is enabling smarter handoffs, automated workflows, and shared dashboards to reduce duplication and accelerate decisions.

This is a trend we believe will only accelerate as councils seek to do more with less, and demand more value from their insurance partnerships.

Data-Driven Decision-Making Is Maturing

Across the board, organisations are getting serious about claims data. From identifying fraud earlier to understanding recurring loss patterns, the focus is shifting from reactive processing to proactive risk management.

Yet digital maturity levels still vary widely. We had several conversations about how tools like our PELICAN platform can help drive consistency and smarter insights through:

• A unified view of all claims across internal and external stakeholders
• Real-time analytics and automated reporting suites
• Automated triage and workflow routing for faster resolution

For many, the question is no longer why transform claims handling – it’s how fast can we get there?

We’re encouraged to see public sector organisations asking tough questions about the future of liability claims. The desire to modernise is real – but so is the risk of fragmentation, duplication, or choosing a tool that doesn’t deliver long-term value.

That’s why we believe the answer lies in combining human expertise with the right digital enablers, solutions that reduce operational burden, improve outcomes, and ultimately save money for the public purse.

Further reading:

Harnessing Technology in Public Sector Claims Management
 Cutting Costs, Not Corners – Four Steps to Smarter Claims Management

Want to continue the conversation, don’t hesitate to reach out: getintouch@pro-global.com

Kristy joined Pro Global (Pro) back in December 2020 to spearhead a transition programme that aimed to leverage its applications and infrastructure, as well as transforming the way the firm worked with technology, during a large growth period.

Coming from a background, which predominantly focused on digital transformation and transition programmes across the financial services and major technology houses, Kristy’s experience complemented Pro’s approach to listening to market needs and developing solutions that directly address them.

Kristy said: “It’s interesting because I had always worked technology-first, whereas Pro is very much SME-led. It’s just a great place to be with technology, to be able to leverage both. It’s been really exciting to understand where you can make a difference.”

Kristy’s first stint in the insurance world prior to Pro saw her working on a claims system from a technology standpoint.

Of late AI has taken off in the insurance industry.

AI and Machine Learning Opportunities

Kristy highlighted the opportunities around AI and machine learning for the insurance industry.

“It’s about improving and increasing data quality [and] processing efficiencies, more prediction around missing data points, more accuracy in your risk assessment and pricing. The insurance market is still extremely document heavy and AI is allowing us to ingest more of that data and [make] quicker decisions. In a lot of organisations we have lots of data, we just don’t have the structure to get through that and AI is helping us generate those responses,” she added.

One example where AI has been beneficial, Kristy noted, is claims, where summarising large document sets is necessary, the data here includes First Notification of Loss, dates and details of the claim.

“It’s really helpful for claims handlers to be able to get that data more efficiently and quickly. From a reporting and analytics perspective as an organisation like Pro, being able to see trends, predictions,and the cost of the claim, is all really interesting. The biggest point people are learning is that you have to go into proof of concepts, and you have to understand what you are trying to achieve with AI and streamlining,” Kristy explained.

Therefore, sufficient planning is vital to benefit from the cost efficiencies of AI.

In terms of primary differences in adopting automation and subsequently tailoring solutions for reinsurers and insurers, Kristy noted that no firm does anything in the same manner.

Kristy continued: “A lot of what we look at is process optimisation – insurers are typically focusing on streamlining customer facing processes like claims handling, policy administration, customer experience and operational efficiency. We see more interaction on the idea of chatbots, mobile apps and automated underwriting

“Reinsurers, on the other hand, tend to concentrate on optimisation around risk assessment management processes like automation, data analytics and modelling reporting capabilities to better evaluate and manage large scale risk.”

But technology is not everything.

Never standing still

Kristy stressed the importance of continuously reviewing and evaluating processes to optimise workflows when it comes to technology. This includes working out the pain points of the team actually using the technology.

Ultimately, as technology is always evolving, keeping pace, being open to learning and asking questions continuously is key.