$168bn in fees & commissions earned from insurance broking activity in 2023, Insuramore
The value of the worldwide market for insurance broking in terms of fees and commissions earned was around $168 billion in 2023, considerably up from around $151 billion in 2022, according to Insuramore a provider of marketing services focusing on the insurance sector.
This increase is equivalent to a growth rate of around 11.3% without adjusting for inflation, but closer to 4.4% as an inflation-adjusted measure.
According to Insuramore, in 2023, this market is estimated to have broken down between around $76.6 billion due to commercial property & casualty (P&C) (non-life) retail broking, $16.5 billion to private P&C (non-life) retail broking, $54.5 billion to employee benefits plus life and health insurance retail broking, $7.4 billion to reinsurance broking, and $13 billion to wholesale broking.
Each of the segments registered a double-digit growth rate during the year apart from employee benefits plus life and health insurance retail broking, analysts noted.
Insuramore also added, without adjusting for inflation, the top 15 broking groups together achieved an even higher aggregate growth rate of 12.3% albeit this was driven in part by M&A activity.
In terms of the value of its total broking revenues worldwide, Marsh McLennan ranked first among broking groups in 2023. The firm was followed in descending order by Aon, Gallagher, WTW and HUB.
Heading the commercial P&C insurance retail broking segment is Marsh McLennan, the private P&C insurance retail broking segment is led by Alliant, employee benefits activity plus retail broking of life and health cover by WTW, reinsurance broking by Aon, and wholesale insurance broking by Amwins.
“Overall, the top 20 groups are believed to have controlled 51.9% of total global broking fees and commissions in 2023 and the top 300 groups for 84.7%. Relative to the equivalent figures computed for 2022 (namely, a respective 51% and 83.2%), this shows that there has been some consolidation in the market structure; this is due both to M&A activity and to the strengthening of the US dollar against most global currencies during 2023, causing groups reporting in US dollars to achieve a higher weighting within the worldwide ranking,” analysts said.
According to Insuramore, among the top 300 groups, the U.S. is the headquarters for 140 (46.7%) of them.
Following the U.S. by this measure are France, the UK, Canada and China, the home countries for a respective 26, 26, 16 and 15 of the largest 300 groups, with the rest of the globe accounting for the remaining 77.
“Looking ahead, it will be apposite to see whether a continuing stream of M&A activity causes the worldwide market to consolidate further in 2024; significantly, eight of the top 300 groups were in the process of being acquired during the first half of the year,” analysts concluded.
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