The insurance brokerage market - United Kingdom

The insurance broker market has been experiencing notable trends starting from 2020, including a diversification in the service offerings and a shifting landscape due to the impacts of technological innovation and the COVID-19 pandemic. With the British Insurance industry expected to pay over £6.2 billion in insurance claims related to the pandemic, brokers adapted by offering new products and extending services to accommodate the emergent needs of customers, such as covering quarantine-related expenses. Moreover, the sector has seen a growing role for insurance broking software with key players like Open GI, SSP, Acturis, and Applied Systems leading the way. Market structures are also changing; smaller firms continue to capture greater market share, challenging the dominance of traditionally large firms. Regulations have been evolving, particularly as the UK adapts to post-Brexit changes with the FCA overseeing the industry's conduct. While the British market has been well-established, with a direct contribution of 12 billion GBP to the British GDP in 2020, global insurance premiums were led by the United States with life and non-life insurance payments combined at around US $1460 billion in 2018. Key global players include Allianz with a 2020 turnover of 140 billion euros, and Axa with 96.7 billion euros, along with leading brokers like Marsh & McLennan Companies and Aon plc with turnovers of 17.2 billion dollars (2020) and 10 billion dollars (2017), respectively..### Evolving Trends in the Insurance Brokerage Market The insurance brokerage market is experiencing a dynamic shift with the interplay of several factors influencing its overall landscape. The increasing reliance on technology and the rise of small and medium-sized enterprises (SMEs) seem to be driving the market trends in a transformative manner. Insurance brokers have traditionally acted as intermediaries between clients and insurance companies, offering personalized advice on risk management and identifying the most advantageous coverage options. However, with the rapid growth of the internet and heightened innovation, the industry is poised to face escalated competition. Online platforms provide clients with abundant options for insurance coverage, challenging brokers to enhance their online visibility and offers. Despite the challenges, insurance brokers have seen opportunities, especially in the British market where the dominance of large firms is beginning to erode. SMEs, which have been continuously growing in number—approximately between 200,000 and 210,000 in recent years—are capturing a larger share of the market. This growth is not only reshaping the market structure but also driving demand as these businesses are often seeking insurance against daily operational risks. Moreover, customer expectations and interactions with insurance brokers are seeing a shift with emphasis on deriving the best value products and reliable support from brokers, although interactions may remain infrequent, with more than 50% of clients communicating with their brokers just once a year. The influence of technological advancements cannot be overstated. Investment into insurance technology has surged, with deals escalating from roughly 28 in 2011 to at least 150 by the third quarter of 2017. Financial backing has also witnessed a substantial increase, jumping from about 140 million USD to at least 1.6 billion USD over the same period. Four significant software providers—Open GI, SSP, Acturis, and Applied Systems—are taking the lead in the British market, offering a range of innovative solutions to brokerage firms. The enforcement of Covid-19 pandemic-related measures provided a stark example of the market's responsiveness. The industry has witnessed new offerings emerge to address the needs brought by the pandemic, such as policy extensions, additional clauses, and comprehensive products catering to companies and families affected by the crisis. Regulatory oversight remains a significant driver of market operations. In the UK, the Financial Conduct Authority (FCA) plays a pivotal role in maintaining order within the brokerage industry. Post-Brexit, new rules are expected to be introduced, reflecting the UK's autonomous stance from the European Union's regulatory framework. In summary, the insurance brokerage market is undergoing a period of change.### Prominent Players in the Insurance Brokerage Market Landscape The insurance brokerage market is an intricate web of firms that cater to a broad spectrum of risk management needs. These key players not only provide necessary coverage options but also bring innovation, stability, and expertise to the industry. Below we explore some of the most influential entities shaping the insurance brokerage landscape. **Allianz** stands as a behemoth in general insurance, with a robust portfolio that demonstrates its capacity to cater to a wide range of insurance needs across various sectors. **Axa** is another giant within the general insurance segment, providing an array of insurance products and services that address the complexities of both individual and corporate risk management. Turning our lens towards the insurance brokers who play the role of matchmakers between clients seeking protection and insurance companies offering policies: **Marsh & McLennan Companies** has solidified its position as a leader in the field, investing in client relationships and adapting to the evolving risks in the global market. **Aon plc** operates as a powerhouse within the sector, known for its innovative approach and global reach, offering tailored solutions to meet diverse client demands. **Jardine Lloyd Thompson Group** (JLT), another major player in the brokerage market, stands out for its expertise in specific industries, bringing in-depth knowledge and specialized services to its clientele. All these firms navigate within a market that is in constant flux, and they are supplemented by the essential supports of insurance broking software providers: **Open GI** leads in this tech subsector, delivering software that enables brokers to be more efficient and responsive in their operations, thereby enhancing the overall client service experience. These companies, noteworthy for their scale, scope, and specialization, continue to drive innovation and maintain the delicate balance of the insurance brokerage market, ensuring that clients have access to the best products and services to manage and mitigate their risks effectively.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 01/07/2021

Summary and extracts

List of charts presented in this market study

• Total des primes globales
• Primes d'assurance vie et non-vie
• Pays où les primes d'assurance vie et non-vie ne sont pas les plus importantes
• Répartition de la prime d'assurance vie et non-vie par canaux de distribution
• [Copy] Size of the global Insurance Brokerage market
• [Copy] Size of the British Insurance Brokerage market
• [Copy] Number of SME's operating
• [Copy] Evolution of market share by size of insurance broker
• Investissements et transactions dans le domaine des technologies d'assurance
• Pensez-vous que le secteur des assurances sera perturbé ?
• What clients get from their insurance brokers
• Fréquence à laquelle les clients et les courtiers se parlent