Brokers and Beyond: Exploring new paths in insurance distribution

Insurance distribution is undergoing profound change, and brokers must adapt to remain relevant. In this Mind Shift interview, COVER speaks with Darryl Grater, Chief Growth Officer at Discovery Insure and Vitality Drive International, about the forces reshaping the broker landscape.

Grater begins by reaffirming the central role of brokers, particularly in complex personal, commercial, and corporate lines. But he warns of increasing pressures: digital direct channels, embedded insurance initiatives, aggregator platforms, and mounting regulatory reforms such as RDR and COFI. Margins are being squeezed, operational costs are rising, and client expectations for personalised, expert service are higher than ever.

Yet, the outlook is not all challenge. Brokers who embrace client-centric models, specialisation, and technology are thriving. Grater emphasises the need for insurers to act as true partners, providing brokers with differentiated products, behavioural insights, and shared-value data. Discovery’s Advisor 360 platform exemplifies this approach, equipping over 8,000 intermediaries with digital onboarding, automated quoting, and compliance support free of charge.

Risk management is also transforming broker responsibilities. No longer mere product distributors, brokers are increasingly seen as risk advisors, expected to engage in surveys, assess exposures, and collaborate with underwriters to design tailored solutions. This proactive approach strengthens trust, reduces claims, and deepens client relationships.

Looking ahead, Grater sees technology, from AI-driven compliance to automated risk insights—as essential for future-proofing broker models. Ultimately, he argues that survival and growth depend on brokers combining deep expertise with digital enablement, while insurers provide the infrastructure to support them.

This wide-ranging discussion underscores both the resilience and reinvention of brokers—charting a path beyond distribution towards advisory excellence and sustainable growth.

Key points

• Brokers remain central to insurance distribution, especially in complex advice spaces.

• Sector faces dual pressures: digital direct channels and embedded/aggregator models.

• Compliance and regulatory complexity (RDR, COFI) add cost and operational pressure.

• Smaller brokers benefit from insurer-provided platforms like Advisor 360, avoiding costly tech builds.

• Risk advisory services are becoming an expected part of broker value.

• Technology, AI, and insurer partnerships will future-proof brokers.