5 key drivers shaping brokers’ strategies in 2025

The insurance landscape is continually evolving. For brokers, staying ahead of emerging risks is no longer just a competitive advantage — it’s a necessity. As client expectations soar and global challenges intensify, brokers must adapt to effectively protect and guide their clients.

Tariffs are now firmly front and center and will be one of the major considerations for brokers in 2025. The main focus is on rising consumer prices. However, your importer clients face a more immediate challenge — higher bond requirements. With U.S. Customs and Border Protection recalculating bond sufficiency on a rolling basis, brokers must secure the right solutions while staying compliant.

Your role in helping clients anticipate these changes is more critical than ever. Ensuring they have access to a surety partner to support high-limit bonds, provide underwriting flexibility and navigate evolving regulations can prevent financial strain and compliance issues.

A recent Intact Specialty Solutions report identifies five key drivers for brokers to consider in 2025. From addressing growing coverage gaps to mitigating supply chain disruptions, understanding these drivers will be useful for brokers to drive meaningful value for clients.

1. Updating insurance to value

Insurance to value is not the property value itself, but the cost to replace or repair if loss or damage occurs. If the limit of insurance is less than the replacement cost, the customer will simply not have enough insurance to cover the entire loss.

Inflation, labor shortages, and supply chain issues are driving up repair and replacement costs. Compounded with increasing natural disasters and more frequent and severe weather events, accurate property valuations are crucial.

To address this, brokers can consider collaborating with clients to update or re-evaluate property values, repair costs, and turnaround times for re-builds. Brokers can also consider encouraging clients to carefully review property values when selecting property limits in their policy.

2. Defending against rising cyber threats

Cyber risks are no longer confined to tech-heavy businesses — they’re a universal concern. By 2025, global cybercrime costs are projected to hit a staggering $10.5 trillion annually. With increasingly sophisticated attacks — such as ransomware, phishing and AI-enabled cyber threats — cyber insurance should not be an afterthought.

For brokers, the challenge lies in helping clients navigate the nuances of cyber insurance policies. Consider advising clients on the broader implications of cyber risks. Present them with risk management tools such as customized insurance policies that address both immediate financial loss and long-term recovery. Explore options that cover ransomware, business interruption and regulatory fines.

Brokers can also guide clients in implementing proactive measures, such as incident response plans, employee training and advanced tools like endpoint detection and response solutions.

3. Mitigating supply chain disruptions

Global supply chains remain under pressure, with challenges stemming from geopolitical tensions, labor shortages, cargo theft and even climate-driven disruptions like droughts affecting major transit routes. These issues can cripple operations and extend recovery timelines for businesses.

Consider recommending contingent business interruption coverage to protect against financial losses tied to supply chain delays. Additionally, strategies like diversifying suppliers, building inventory buffers and investing in technology for improved supply chain visibility can strengthen your clients’ resilience. Marine cargo insurance and force majeure clauses are other critical considerations to protect clients from unexpected liabilities.

4. Adapting to extreme weather events

Natural disasters and extreme weather events are on the rise, with global insured losses exceeding $100 billion annually for the past four years. From wildfires and hurricanes to freezing conditions in unexpected regions, the impacts are both widespread and unpredictable.

Brokers must navigate the challenging market to secure the best possible policies for their clients and ensure they are adequately protected against growing risks. Potential solutions include encouraging clients to consider securing coverage for previously unconsidered risks, such as flooding caused by convective storms. Encouraging clients to adopt risk management measures such as using resilient building materials, implementing flood barriers and using early warning systems can reduce losses and protect operations.

5. Navigating social inflation

Rising litigation costs and the growing prevalence of nuclear verdicts — i.e., liability awards exceeding $10 million — are driving up insurance claims costs. Social inflation has become a significant pressure point for insurers and businesses alike.

Evaluate whether your clients have adequate liability coverage, particularly in sectors prone to litigation like health care, transportation and manufacturing. Brokers play a key role in helping clients navigate the escalating legal landscape. This includes explaining how social inflation is driving up liability costs across industries, why premiums are increasing and what additional coverage options can provide better protection

The role of brokers in 2025: Protect clients from tomorrow’s risks

In 2025, brokers will play a critical role in helping clients navigate an increasingly complex risk landscape. From adapting to extreme weather events to strengthening cyber resilience, staying ahead of these evolving challenges is essential. By embracing innovation and tailoring risk management strategies, brokers can reinforce their role as trusted advisors while safeguarding their clients’ future.

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Lynn O’Leary is president, U.S., Intact Specialty Insurance Solutions. Contact her at [email protected].