Total fees and commissions earned from insurance broking activity worldwide in 2022 were worth over £120bn
Marsh McLennan was ranked the top broking group in 2022 for its worldwide revenues, new data from Insuramore has revealed.
In a statement released yesterday (6 June 2023), the insurance marketing consultancy firm revealed that global fees and commissions earned from insurance broking activity last year were worth over $150bn (£120.8bn).
It said Marsh was ranked first among broking groups in 2022 for revenues secured, followed by Aon, WTW, Gallagher and Acrisure.
Insuramore also revealed that Marsh was ranked highest in commercial property and casualty (P&C) insurance retail broking during the year.
Meanwhile, insurance broker Hub was ranked as the top firm for private P&C insurance retail broking, while WTW took top spot for employee benefits activity plus retail broking of life and health cover.
Aon led the reinsurance broking segment, while Amwins ranked highest in wholesale insurance broking, Insuramore added.
Global picture
Meanwhile, the value of the worldwide market for insurance broking in terms of fees and commissions earned was around $151.4bn (£121.9bn) in 2022, up from around $137bn (£110.3) in 2021.
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This was equivalent to a growth rate of almost 10.5% without adjusting for inflation, but closer to 2% as an inflation-adjusted measure.
Last year’s total figure was most significantly contributed to by commercial P&C retail broking, which provided $68.8bn (£55.4bn) in fees and commissions.
Employee benefits plus life and health insurance retail broking accounted for $50bn (£40.3bn), while private P&C retail broking provided $14.6bn (£11.5bn).
Insuramore said that the top 20 broking groups were believed to have controlled 51.5% of total global broking fees and commissions in 2022.
“Relative to the equivalent figures computed for 2021, this shows that there has been some consolidation in the market structure,” it added.
“This is due both to M&A activity and to the strengthening of the US dollar against most global currencies during 2022, causing US-based groups to achieve a higher weighting within the worldwide ranking.”
M&A
When the UK government announced its mini budget in September 2022, the pound’s value fell significantly against the dollar – at its lowest, sterling fell close to $1.03 as markets reacted to tax cut proposals.
And earlier this year (13 April 2023), acquisitive brokers operating in the UK insurance market told Insurance Times that there was no shortage of US-based interest in acquiring UK firms.
“Looking ahead, it will be apposite to see whether a continuing stream of M&A activity causes the worldwide market to consolidate further in 2023 or if the dynamic growth of some smaller and medium-sized competitors causes the share of the top 20 groups to hold at just over a half of global broking revenues,” Insuramore added.
- Insurance Times has converted dollar amounts into pounds using an exchange rate of $1.24 = £1, which was correct as of 1 June 2023.
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