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Recently, Insuramore, a British research institution, announced the top 15 insurance brokerage companies in the world in 2022. The three well-known brokerage companies, Wei Daxin, Aon and Wei Lai Tao Yue, still dominate the list, and other institutions on the list are relatively stable.

According to Insuramore’s data,In 2022, the total brokerage business of all brokerage companies in the world reached $151.393 billion, of which the top 300 brokerage companies accounted for 83.2% of the total brokerage income in the world..

The top 15 insurance brokerage companies in the world collected a total of 71.446 billion US dollars, accounting for 47.2% of the total brokerage business income of all brokerage companies in 2022, nearly half.. The total brokerage income of all other brokerage companies not on the list reached $79.948 billion, accounting for 52.81%.

Judging from the scale of brokerage income,The largest brokerage company in the world is still Wei Daxin, whose brokerage business income in 2022 was $16.338 billion., accounting for 78.9% of the total revenue, and its global market share reached 10.79%.

Aon ranked second with brokerage income of $11.557 billion., this revenue accounted for 92.6% of the total revenue, and the company’s global market share was 7.63%, which was slightly lower than that of Weidaxin. The brokerage income of these two companies is above 10 billion, and they are the only two companies on the list whose income exceeds 10 billion US dollars.

Wei Lai Tao Yue’s brokerage income in 2022 was $7.781 billion., accounting for 87.8% of the total revenue, and its market share in the world is only 5.14%, which is about half that of the first-place Vida letter.

As a company with strong development momentum, Gallagher’s brokerage income is second only to Weilai Taoyue, reaching 7.355 billion US dollars, with a global market share of 4.86%.

Among other companies on the list, companies with brokerage income of more than $3 billion include Acrisure, HUB and Lockton, which are $3.823 billion, $3.49 billion and $3.205 billion respectively. Alliant, Truist Insurance Holdings, AssuredPartners, USI Holdings and Brown &Brown have brokerage incomes ranging from 2 billion to 3 billion dollars, with brokerage incomes of 2.954 billion dollars, 2.509 billion dollars, 2.363 billion dollars, 2.343 billion dollars and 2.322 billion dollars respectively.

Judging from the compound growth rate from 2020 to 2022, basically the growth of insurance brokerage companies is considerable, and all of them have achieved positive growth. Among them, the highest compound annual growth rate was contributed by Howden Group Holdings, reaching 55.2%, which also promoted the company from the previous lower position to 13th place. Another company with a considerable growth rate is Acrisure, with a compound annual growth rate of 40.5%. However, considering the gap between its economic income scale and the previous one, it is estimated that it will not affect the ranking within one or two years. Except for a few head companies, the compound annual growth rate of the remaining companies is between 10% and 25%, which highlights the development of the brokerage market.

For several head companies, the compound annual growth rates of VITEX and Aon are 8.2% and 6.3% respectively. Considering their business scale, such growth is normal and represents the healthy development of the company’s business. However, it should be pointed out that Weilai Taoyue is the only company on the list with a negative compound annual growth rate, which is estimated to have a great relationship with the sale of the business after the company merged with Aon in the previous two years.

As can be seen from the following figure, basically,The business of insurance brokerage companies basically revolves around risk management, welfare, retirement, reinsurance, etc., and is essentially involved in more in-depth business links such as insurance risk control and product design., through their own professional knowledge accumulation, to provide added value for insurance companies.

The following is the detailed business situation of some companies.

Gallagher: risk management, consulting

Although not well-known, Gallagher is the second largest insurance brokerage company after the first three. In recent years, the brokerage income of this company has also increased rapidly, which greatly exceeds the momentum of Wei Lai Tao Yue.

Gallagher has served many industries, including aerospace, architecture, energy, shipping, higher education, real estate, religion, and community for the aged.

In the insurance industry, some solutions provided by it include alternative risks and self-insurance, casualties, claims settlement, commercial guarantee bonds, construction bonds, credit and political risks, crisis resilience insurance and consultation, network, data and analysis, workers’ compensation and so on..

Taking alternative risk solutions and self-insurance solutions as examples, Gallagher provides them through its wholly-owned subsidiary ARTEX, helping customers around the world in the fields of insurance and self-insurance management, project and facility management, insurance-related securities (ILS) and structured transaction management. Some specific service arrangements include:

Group exclusive insuranceGroup self-insurance provides insurance for the risks of a number of unrelated companies, each of which owns a small part of the insurance company.

Core exclusive insuranceAs a growing field in the exclusive market, core exclusive insurance allows the parent company to isolate risks into different accounts.

Self-insurance leaseThis kind of arrangement allows enterprises to flexibly join established or sponsored exclusive plans and share profits with other companies, but they don’t have to invest so much money in advance.

Medical stop lossSelf-funded plan to provide large employer pricing and risk management services for medium-sized companies.

Alliant: risk management, employee benefits and reinsurance

Alliant is one of the top five commercial retail insurance brokers in the United States.. The company’s business includes risk management, employee benefits and reinsurance. In terms of risk management, its business covers many industries such as agriculture, aerospace, construction, network, energy and shipping, and some risk solutions provided include claims settlement, safety and loss control, trade credit and so on.

In terms of employee welfare, it provides various solutions such as welfare strategy, health and productivity, global manpower consultation, employer technical consultation and stop loss.

Compared with foreign countries, the development of domestic insurance intermediary market is not smooth.

All along,Due to the large number of business maps and different development, the problem of "multi-scattered" development has long existed in the field of insurance intermediary. Therefore, the closure and retreat of traditional institutions have always existed..

According to the data of beijing business today. com, as of January this year, the local banking and insurance regulatory bureaus cancelled or planned to cancel 1,870 insurance intermediaries’ licenses for concurrent insurance agency business, of which 1,816 insurance intermediaries’ licenses were cancelled, and 43 insurance professional institutions and insurance companies’ mutual agency licenses were cancelled; Insurance intermediaries in the automotive sector still account for the bulk.

However, it is worth noting that with the entry of new participants, the overall domestic intermediary market is also improving. Although no company has entered the top 15 in the world in terms of revenue scale, with the blessing and application of new models and technologies, the power of the overall intermediary is also strengthening.

Specifically, listed Fanhua, Shuidi and Huixuan all performed well in the first quarter.. In the first quarter, the operating income of Fanhua Holdings was 830 million, a year-on-year increase of 21%; The operating profit was 60.355 million yuan, a year-on-year increase of 193%. From the perspective of premium income, Fanhua Holdings achieved a total premium of 4.44 billion yuan, a year-on-year increase of 29%, far exceeding the average growth rate of 8.9% in the industry. Among them, the new single premium scale was 850 million yuan, up 51.4% year-on-year, and the renewal premium was 3.59 billion yuan, up 24.6% year-on-year.

Similarly, in the first quarter, the net operating income of each business module of Shuidi Company was 606 million yuan and the net profit was 49.73 million yuan. In the insurance-related business, Didi Bao completed the first-year premium of 1.692 billion yuan in the first quarter, an increase of 6.3% over the previous quarter. As of March 31st, 2023, Shuidi Company had provided 876 insurance products for customers.

Looking at Huixuan, in the first quarter of 2023, Huixuan’s premium, revenue and profit all achieved double-digit growth compared with the previous quarter. Among them, Huixuan platform contributed a total premium of 1.93 billion yuan, an increase of 33.4% from the previous month; The total revenue was 300 million yuan, up 15.7% from the previous month; The net profit was 18.414 million yuan, an increase of 30.3% from the previous month.

While the new force of insurance intermediary has made steady progress, companies such as head insurance intermediary Mingya and Datong have also made rapid progress in recent years. In terms of data, Mingya achieved a scale premium of 14.7 billion yuan in 2022, including a new single premium of 7.424 billion yuan; In 2022, Fanhua realized a total premium of 12.78 billion yuan, a year-on-year increase of 10.4%.

These data and growth show that the domestic insurance intermediary market is also breaking the original chaos, developing in an orderly and positive direction through the adjustment and reconstruction of business model, introducing new forces and adding new technologies. In view of this, we also expect the domestic insurance intermediary to develop better.

Looking at the top 15 list of global insurance brokerage companies, we can see that,Basically, the development of foreign brokerage companies presents two characteristics: merger and specialization.. To a certain extent, these two trends influence each other and complement each other, helping various brokerage companies to build a moat of business.

The merger and acquisition of insurance brokerage companies has become the norm in the industry.

According to data released by Chicago investment bank and financial consulting firm Optis Partners LLC,In the first quarter of 2023, there were 158 mergers and acquisitions between insurance agents and brokerage companies, down 17% year-on-year, the lowest level since 2019.7% lower than the five-year average transaction volume.

The reasons for the lower volume of M&A transactions include the rise in interest rates and the restrictions imposed by the uncertain economic situation, which led some active buyers to slow down M&A transactions. However, it should be pointed out that M&A transactions have been going on.

Source: Optis Partners LLC

The data expenditure of Optis Partners LLC, the most active buyer in the first quarter was BroadStreet Partners Inc, which made 14 mergers and acquisitions, followed by Inszone Insurance Services LLC and Hub International Ltd, with 10 transactions each; World Insurance Associates LLC conducted 9 transactions, while Risk Strategies Co conducted 8 transactions.

Among them, Arthur J. Gallagher & Co is the most active listed brokerage company. Although Optis Partners LLC pointed out that the company announced 7 transactions in the first quarter, we can see from its official website that there were 10 M&A transactions, the details are as follows.

As can be seen,One of the characteristics of these M&A targets is that they have been deeply involved in some relatively small and unpopular insurance and risk management fields for many years.. For example, Anderson Benson is a retail insurance broker and risk management company, with expertise in entertainment niche and expertise in hotels, buildings, transportation and private customers all over the United States; AT Squared Holdings Limited is an insurance broker specializing in the field of education in the UK. Besides providing services for independent schools and universities, it also pays special attention to continuing education.

Through these mergers and acquisitions, the brokerage company itself can quickly expand into different fields, and quickly gain a foothold in a certain field through the professional skills of the acquisition target, which is the fundamental significance of mergers and acquisitions. Of course, on another level, mergers and acquisitions can also rapidly expand the business map of brokerage companies and expand their geographical coverage.

The so-called specialization means that brokerage companies provide solutions to solve their business difficulties and pain points for enterprises, individuals and various institutions through their own professional knowledge accumulation and technical empowerment in risk management and consulting services..

Looking at the list, although some large insurance brokerage companies often conduct business in multiple markets around the world, forming the current volume, there are also some companies that have only been deeply cultivated in some markets in the United States and have developed into global Top insurance brokerage companies. Therefore,Insurance brokerage companies are bound to develop in the direction of specialization and diversification. They should not only have the ability of professional risk management and risk prevention in a certain field, but also need to cultivate in many fields to form their own core competitiveness.. As for China, which is the second largest insurance market in the world, we also look forward to the emergence of a world-class insurance intermediary company in China, which will clear the name of domestic intermediaries and lead the way for market development.

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