By Favour Nnabugwu
The world’s top 20 broking groups as measured by total insurance broking revenues in 2020 accounted for a combined 52.3 percent of fees and commissions earned in 2020
The total fees and commissions earned from insurance broking activity were worth about $117.7bn.
Of this, Insuramire said about $55.1bn was from commercial P&C insurance retail broking, $11.2bn from private P&C insurance retail broking, $37.6bn from employee benefits plus life and health insurance retail broking, $5.3bn from reinsurance broking, and $8.4bn from wholesale insurance broking.
Insuramore said the global pandemic had much less of an impact on insurance broking groups than it did on enterprises in some other industries.
It said that discounting inflation, growth in global broking revenues during the year is thought to have been between about 3% and 5 percent, 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.
An acceleration in M&A activity among broking groups was a feature of 2020, and the pandemic had the effect of encouraging such activity rather than diminishing it, with many hundreds of transactions concluded globally, said Insuramore.
The firm said further consolidation among insurance broking groups is taking place during 2021 but the sector will remain a comparatively fragmented one.
“Ordered alphabetically, 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,” said Insuramore.