The Current Numbers
According to IBISWorld, a market research firm, there were approximately 1,620 insurance brokers and agents operating in the UK in 2023. This figure represents a slight decline of 0.5% from the previous year.
Market Concentration
Despite the sizable number of brokerages, the market isn’t entirely fragmented. The top four companies hold around 32% of the market share, indicating a trend towards consolidation. These leading players include Marsh & McLennan, Arthur J. Gallagher, The Ardonagh Group, and others.
Beyond the Numbers
The UK’s insurance broking industry is undergoing significant changes. Here are some key trends:
- Technology Adoption: Outdated systems are hindering progress. Many brokers recognize the need to embrace automation and integrate with insurers to enhance efficiency.
- Shifting Priorities: Brokers are grappling with rising insurance premiums while long-term trends like ESG (environmental, social, and governance) considerations haven’t received as much focus.
- The Hybrid Work Model: The pandemic accelerated the adoption of hybrid work models, and it appears to be here to stay. Brokers and insurers need to adapt their strategies to this new reality.
The Future Outlook
The number of brokerages in the UK might continue to fluctuate, but their role remains crucial. As technology evolves and client needs become more complex, brokers who can leverage digital tools and provide specialized expertise will likely thrive.