With the new UK tax year now underway, insurers and Managing General Agents (MGAs) are reviewing the road ahead, and it’s clear that 2025 is not going to be a straightforward year for the sector, as from economic pressure and fraud risk, through to supply chain disruption and growing customer expectations, the challenges are stacking up fast.
For many, the new financial year brings with it the need to reduce overheads, improve operational efficiency and offer standout service, all without increasing risk or exposure.
Luckily, that’s where S&G Response can come in to help.
With a long-standing history supporting insurers, MGAs, and brokers alike, S&G offers a scalable, technology-led, and customer-first solution that directly addresses the key challenges the market is facing this year.
Keen to know how?
Let’s take a closer look.
Challenge #1:
Increased Pressure on Operating Margins
The combination of inflation, rising repair costs and a competitive pricing environment means insurers and MGAs are being forced to do more with less.
Today, claims costs are rising across the board, driven by more expensive parts, longer repair times and greater complexity in vehicles, yet consumers are still expecting competitive premiums.
How S&G can help:
With efficiency more important than ever, S&G provides tailored claims solutions that alleviate operational burden whilst driving measurable savings. Our approach combines expertise, technology, and nationwide coverage to support your bottom line without compromising service, involving:
- A fully outsourced claims handling service that takes the pressure off in-house teams and delivers cost-effective performance without compromising quality
- Access to an expert repairer network with triage and deployment handled from FNOL, ensuring the most appropriate solution is delivered first time, reducing delays and avoiding unnecessary costs
- And streamlined operational processes powered by technology, helping partners reduce time-to-settlement and increase efficiency throughout the claims lifecycle
Challenge #2:
Evolving Customer Expectations
In today’s market, customers expect a fast, transparent, and digital-first service, and any delays, miscommunication or outdated processes risk damaging the customer experience and ultimately, brand reputation.
How S&G can help:
According to the Financial Ombudsman Service, complaints related to motor insurance rose significantly throughout 2024, many of which were tied to delays and poor communication in the claims process. Because of this, S&G has worked to build a service offering which is streamlined, clear and honest, and it’s made possible by:
- Dedicated customer communication teams who offer clear updates throughout every stage of the claim, ensuring customers feel informed and supported
- Custom-branded portals for insurers and MGAs that offer real-time visibility, documentation, and updates
- And 24/7 support to ensure service isn’t interrupted, even during busy periods, weekends, or bank holidays
Challenge #3:
Rising Risk of Fraud
Motor fraud remains a significant concern, with the Association of British Insurers (ABI) reporting over £1 billion worth of insurance fraud detected in a single year, and fraudulent credit hire claims, exaggerated injuries and staged accidents are specifically threatening to insurers and MGAs, as they continue to be a costly and persistent concern that is forever under scrutiny.
How S&G can help:
At S&G, we combine preventative processes with hands-on expertise to protect our partners from both financial loss and reputational risk. This includes taking a structured, proactive approach, whereby we:
- Dedicate fraud prevention protocols, including proactive identification of red flags during the claims process
- Tightly control our repair network with vetting and monitoring of all repairers and suppliers to ensure full compliance and quality assurance
- And appointment of experienced legal and technical teams to offer defence support in fraudulent or questionable claims and protecting insurers from costly outcomes
Challenge #4:
Supply Chain Disruption and Skills Shortages
Vehicle repairs continue to be impacted by supply chain issues, technician shortages and long lead times, making it harder than ever to guarantee swift repairs and vehicle returns, and harder still to control hire durations and associated costs.
How S&G can help:
These challenges demand agility and intelligent coordination – something which S&G delivers every day.
Our nationwide infrastructure and smart deployment strategies ensure that delays are minimised, and service levels stay high, even when the market is under strain. It’s made possible thanks to our:
- Nationwide repair and recovery network which helps ensure vehicles are picked up, triaged and repaired in the most time and cost-efficient way
- Vehicle replacement and credit hire provision, meaning customers are kept mobile and insurers avoid additional claims friction
- Dynamic deployment based on repair type and severity, reducing bottlenecks and ensuring the right resource is used for each job
Challenge #5:
Compliance, Governance, and Increased Regulatory Scrutiny
The new tax year also brings renewed focus on compliance and data governance, and the Financial Conduct Authority (FCA) continues to push for fair value across all insurance products, with additional reporting and oversight responsibilities falling on MGAs and insurers alike.
There’s also increased scrutiny on claims handling processes, supplier due diligence and how businesses assess and deliver outcomes for customers in 2025, meaning that insurers and MGAs must demonstrate they’re not only meeting regulatory requirements, but actively driving good outcomes for customers in every claim.
How S&G can help:
S&G makes compliance effortless through structured, auditable processes and transparent supplier relationships, and by helping our partners remain fully aligned with evolving FCA demands, it also means there’s no extra work or complexity for internal teams.
For example:
- Audit-ready processes and transparent reporting across every stage of the claim help stakeholders stay fully compliant with FCA expectations
- Data-driven insight into claim duration, costs customer satisfaction and repair outcomes allow for complete transparency
- And a fully vetted and monitored supplier network, with strict service-level agreements and performance KPIs, means no stone is ever left unturned
A new year and a new approach
The 2025/26 tax year is shaping up to be another complex chapter for the insurance industry, but, with the right support in place, insurers and MGAs can not only manage risk, but create genuine competitive advantage through better customer outcomes, lower costs, and smarter operations.
Contact our S&G team today to find out how we can help support your business in 2025.
