The global market for commercial property and casualty (P&C) insurance retail broking saw impressive growth in 2023. According to research by Insuramore, the market's revenue reached around $76.6 billion, showing a 13.1% increase from the previous year, or 6.2% when adjusted for inflation. 

Leading Companies in the Market

Five major companies dominated the sector by revenue:

1. Marsh McLennan
2. Aon
3. Gallagher
4. WTW (Willis Towers Watson)
5. Acrisure

These top five groups made up 37% of the global market. The top 15 groups combined controlled 56.8% of the market, while the top 300 groups generated about 88.1% of the total global revenues, amounting to $67.5 billion.

Market Growth Factors

Insuramore's research pointed to significant growth in the commercial P&C retail broking sector. This growth was largely driven by rising premiums in commercial specialty insurance and the US commercial excess and surplus lines segment.

More than half of the top 300 broking groups saw their fees and commissions grow at an annual rate of over 10% from 2020 to 2023. Over 20 of these groups experienced a threefold increase in their revenues during this period.

Leading Firms in Revenue Growth

Among the firms showing the most rapid growth was the UK-based Jensten Group, whose revenues in 2023 were more than 12 times higher than in 2020. Other notable non-US groups that tripled their revenues include:

- Alper
- Billyard Insurance Group
- David Roberts & Partners Group
- Groupe Guémas
- Howden
- JMG Group
- McGill and Partners
- Navacord
- Partners&
- Yellow Hive

In the US, the following groups also saw their revenues triple or more over the same period:

- Alera Group
- BRP Group
- Cobbs Allen Capital Holdings
- Correll Insurance Group
- Highstreet Insurance Partners
- Inszone Insurance Services
- Patriot Growth Insurance Services
- PCF Insurance Services
- Sequoia
- The Liberty Company
- World Insurance Associates

Role of Mergers and Acquisitions

Mergers and acquisitions (M&A) played a key role in this growth. For example, MLP and OneDigital entered the top 300 groups through acquisitions. MLP, a Germany-based group, acquired RVM in January 2021. OneDigital has made several acquisitions in the P&C space since 2020.

Future Trends

Looking ahead, Insuramore suggests that future trends may involve larger US-based groups seeking acquisitions outside their home market. Conversely, non-US headquartered groups might target the US market to drive their growth.

Simplifying the Market Dynamics

To put it simply, the commercial P&C insurance broking market is thriving, with substantial revenue growth seen across the globe. Key players like Marsh McLennan, Aon, Gallagher, WTW, and Acrisure are leading the way. Growth is being fueled by rising premiums and strategic mergers and acquisitions. Firms are expanding rapidly, particularly through acquisitions, which allow them to scale quickly and efficiently.

The Impact on Policyholders

For policyholders, this growth and consolidation mean that they have access to more robust and potentially more competitive insurance offerings. Larger broking firms can negotiate better terms with insurers and offer more comprehensive coverage options. However, it also means that staying informed about their broker's affiliations and the broader market dynamics is crucial.

The commercial P&C insurance retail broking sector is experiencing significant growth, driven by increasing premiums and strategic mergers and acquisitions. The top players are expanding their market share, and future trends indicate a continued focus on cross-border acquisitions to sustain growth. This evolving landscape offers both opportunities and challenges for policyholders and industry professionals alike.

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