Broker consolidators could control 13.7% of the total UK broking market by 2010, says market analyst Datamonitor.
Leading commercial lines consolidators, which include Towergate, Oval and Smart & Cook, currently control 8% of the market, equivalent to £3.4bn in gross written premiums (GWP).
With massive growth targets, Datamonitor predicted the level of GWP in consolidators' hands would rocket to £7.6bn GWP by 2010.
Growth, it said, would be encouraged by AXA's recent acquisitions of Layton Blackham and Stuart Alexander.
"AXA's recent acquisitions may spur further purchases by insurers, which do not want to get left behind in the SME sector," said analyst Andrew Birkett.
Towergate is set for increased dominance as its drives towards its £3bn GWP target by the end of 2007, which will increase its market share to 7%. In 2006, the leading consolidator controlled £1.7bn GWP, equal to a 4% share of the market.
