Source: asiainsurancereview.com

According to rankings and analyses released yesterday by Insuramore, a provider of services and consultancy with a primary focus on the insurance sector, the world’s top 20 insurance broking groups as measured by total insurance broking revenues in 2020 (combined of fees and commissions earned) accounted for just over a half (52,3%) of global insurance broking revenues in 2020.

The value of the worldwide market for insurance broking in terms of fees and commissions earned was $117.7bn in 2020. The breakdown for this is:
– $55.1bn – to commercial P&C (non-life) insurance retail broking,
– $11.2bn – private P&C (non-life) insurance retail broking,
– $37.6bn – employee benefits plus life and health insurance retail broking,
– $5.3bn – reinsurance broking, and
– $8.4bn – wholesale insurance broking.

COVID-19 impact

The analyses show that the global pandemic had much less of an impact on insurance broking groups than it did on enterprises in some other industries, Insuramore says. Growth in global broking revenues during the year is thought likely by Insuramore to have been between around 3% and 5% with reinsurance and wholesale insurance broking plus both commercial and private P&C insurance retail broking tending to fare better than broking and administration of employee benefits.

M&A

A further feature of 2020 was the acceleration in M&A activity among broking groups; the pandemic had the effect of encouraging such activity rather than diminishing it with many hundreds of transactions concluded globally. Furthermore, among the top 250 broking groups at the end of 2020, a significant number were in the process of merging with or being acquired by rivals via deals expected to conclude in 2021.

Networks

In alphabetical order, Arthur J. Gallagher, Aon, Marsh & McLennan and Willis Towers Watson are the four largest groups in commercial P&C insurance retail broking and employee benefits plus life and health insurance retail broking, and are also four of the five largest in reinsurance broking.

However, Amwins, Ryan Specialty Group and Truist Insurance Holdings are among the foremost competitors in wholesale insurance broking with Confie (in the process of merging with Alliant) followed by HUB and AA Insurance Services likely to be the top three in private P&C insurance retail broking.