Client Expectations Reshape Insurance Brokers as Service Gaps Emerge

New Zywave survey reveals disconnects between evolving client expectations and broker delivery across employee benefits and commercial insurance.
By: | September 3, 2025
Topics: Brokerage | News
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Nearly 82% of employers would drop their insurance broker for slow response times and ineffective service, highlighting an urgent need for brokers to reevaluate their service delivery models in an increasingly complex risk environment, according to the 2025 Broker Services Survey from Zywave.

The insurance brokerage landscape is experiencing a fundamental shift in client expectations. While 87% of nearly 900 survey respondents report satisfaction with their brokers, a gap exists between those who are merely “satisfied” (26%) and “very satisfied” (60%), the survey found.

“Today’s consumers expect timely and effective service, and insurance buyers are no exception,” said Patrick Noonan, vice president of content development for Zywave. “Brokers need to stay informed of their clients’ challenges and look for opportunities to offer guidance to maintain strong relationships and retention numbers.”

Communication frequency has emerged as a critical differentiator, according to the report. Despite 84% of employers wanting at least monthly contact from their brokers, approximately 23% go two months or more without receiving information or resources. Nearly half of respondents prefer weekly or even daily outreach—a dramatic escalation from traditional quarterly check-ins, the report noted.

The demand for proactive engagement extends to renewal planning, where 41.4% of respondents expect to hear from brokers six months before policy renewals. And 47.7% want three months’ advance notice, leaving little room for last-minute scrambling that characterized past renewal seasons.

Service Gaps Create Competitive Vulnerabilities

The survey reveals disconnects between what employers consider important and what brokers actually deliver, according to Zywave. In employee benefits, while 97% of respondents view compliance support as critical, only 71% say their broker fully provides this service—a 26-percentage-point gap. The disparity widens dramatically for strategic benefit planning, where a 52-point gap exists between importance (93%) and delivery (41%), the survey found.

Commercial insurance brokers face equally daunting challenges, the report added. Quality risk management services show a 44-point gap between client expectations (94%) and broker delivery (50%). Proactive compliance updates reveal a 33-point shortfall, while guidance on market conditions lags by 34 points.

These gaps matter because clients are increasingly willing to act on dissatisfaction. Beyond slow response times, 50% would switch brokers due to lack of consistent communication, and 49% would leave if their broker fails to act as a strategic advisor, according to the survey. The transactional broker model appears obsolete, with 69% of employers now prioritizing trusted advisor relationships—up from 53% the previous year.

Strategic Evolution Becomes Survival Imperative

The findings suggest brokers must reimagine their operating models to survive in 2025’s high-stakes environment. With compliance emerging as a top-three employee benefits and HR concern amid regulatory uncertainty, brokers who cannot field complex questions risk losing relevance, the survey report said. The expectation for multiyear strategic planning, benchmarking data and cost management guidance reflects clients’ need for partners who can navigate escalating risks.

Technology adoption and scalable communication solutions appear essential for meeting heightened engagement expectations. For example, the 95% of respondents who value online access to compliance and HR tools—yet see only 67% fulfillment—point to clear opportunities for digital enhancement.

For commercial insurance specifically, respondents anticipate needing increased support in navigating market changes, addressing industry-specific risks and managing alternative risk transfer strategies, the survey found.

These sophisticated needs require brokers to move beyond policy placement toward comprehensive risk advisory services, transforming from insurance intermediaries into indispensable business partners who can demonstrate measurable value in an environment where, as the survey report noted, “even small missteps can trigger outsized consequences.”

Obtain the full report here. &

The R&I Editorial Team can be reached at [email protected].

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