Press release global commercial_non-life_insurance_brokers
London, 24 June 2013 - On-going research from Finaccord shows that the global market for commercial non-life insurance broking will accelerate in the years leading up to 2016 driven by strong growth in the underlying market for commercial non-life insurance premiums in North America and emerging markets and the increasing importance of brokers in the intermediation of insurance policies for small and large businesses in the majority of countries surveyed.
Published on: Mar 4, 2016
Transcripts - Press release global commercial_non-life_insurance_brokers
PRESS RELEASECommercial Non-Life Insurance Brokers: Global ResearchCommercial non-life insurance broking markets outside of Europe and North America are growingrapidly and will account for 23.6% of the global market by 2016London, 24 June 2013 - On-going research from Finaccord shows that the global market forcommercial non-life insurance broking will accelerate in the years leading up to 2016 driven by stronggrowth in the underlying market for commercial non-life insurance premiums in North America andemerging markets and the increasing importance of brokers in the intermediation of insurance policiesfor small and large businesses in the majority of countries surveyed.Finaccord estimates global commercial non-life insurance broking revenues at USD 46.26 billion in2012, up from USD 41.90 billion in 2008. While most markets in Europe saw only moderate increasesor declines in revenue over that period of time, emerging markets experienced high growth rates, ledby India with a nominal compound annual growth rate of 36.3% between 2008 and 2012, followed byArgentina and China with annual increases of 28.0% and 22.4%, respectively.As far as the geographical distribution of broking revenues is concerned, the research indicates thattaken together Canada and the US accounted for 50.8% of the global market in 2012. This was aconsequence of the enormous value of premiums in the underlying market for commercial non-lifeinsurance in North America and the fact that brokers (including independent agents) dominatedistribution in both Canada and the US. Indeed, the share of brokers (as opposed to tied agents ordirect sales) in the distribution of commercial non-life insurance in Canada is estimated to be thehighest in the world at 96.3% while in the US, brokers are also dominant with a share of 73%.Finaccord expects that the value of the global market for commercial non-life insurance brokingrevenues will further increase to USD 55.43 billion in the years to 2016. Between 2012 and 2016, theshare of North America within the global total is likely to decline slightly to 50.1% whereas the share ofEurope is expected to experience a sharper drop from 29.0% to 26.6%.“Brokers in North America will benefit from healthy growth rates in the underlying market forcommercial insurance”, commented Bernd Bergmann, a consultant at Finaccord. “Meanwhile, whilebrokers in Europe are generally gaining at the expense of other distribution channels, growth in theirrevenues is limited by the mediocre dynamics in commercial insurance premiums which are likely toexperience a slow recovery from the difficult market environment that characterised the years from2008 to 2012.”Meanwhile, countries elsewhere in the world (i.e. outside Europe and North America) are expected tosee their share of global commercial non-life insurance broking revenues grow from 20.2% to 23.4%.India is expected to enjoy the highest growth rate as Finaccord predicts that it is likely to more thandouble its existing market for commercial non-life insurance broking revenues between 2012 and2016.“Outside Europe and North America, the significance of brokers as intermediaries of commercial non-life insurance can vary dramatically as they play only a very small role in some countries, such as
Japan where multi-tied agents are far more important, whereas brokers dominate the distribution ofcommercial lines in Argentina, Australia, Brazil and South Africa among other countries. Crucially,they also account for a rapidly rising proportion of the market in China and India”, continued MrBergmann.Finaccord also carried out detailed analyses of the leading commercial lines brokers in each of the 30markets investigated. As might be expected, Aon and Marsh are by far the largest players in globalcommercial non-life insurance broking with Aon estimated to account for about 13% of globalrevenues ahead of Marsh with 11% and Willis with 3%. Finaccord’s analysis also indicates that Aonhas only a marginally higher market share in North America than Marsh. However, Aon is estimated tohave bigger lead over Marsh in Europe and in the rest of the world.Across the 30 countries surveyed by Finaccord, Aon was found to be the market leader in commerciallines broking in 16 countries ahead of Marsh which was the largest in eight. Meanwhile, Finaccordidentified six countries in which neither of these two international groups was market leader. The sixmarkets in question were Austria, China, Denmark, France, Portugal and Switzerland.“Due to their frequent acquisitions, both Aon and Marsh tend to grow faster than the overall market inmost countries. However, outside of the major markets, the pool of viable acquisition targets can oftenbe limited. In future, it is reasonable to expect that Aon and Marsh will continue to grow their share ofglobal commercial lines broking revenues but that some of that growth will have to be achievedorganically,” concluded Mr Bergmann.--- END ---Media contact: Roberto Napolitano, +44 (0)20 3008 4406, email@example.com.Notes to editors:Finaccord is a market research, publishing and consulting company specialising in financial services. Itprovides its clients with insight into and information about major issues in financial services in the UK,Europe and globally, with a particular focus on marketing and distribution topics such as affinity marketing,bancassurance and strategic alliances.Countries covered by the Commercial Non-Life Insurance Brokers series are Argentina, Australia, Austria,Belgium, Brazil, Canada, China, the Czech Republic, Denmark, Finland, France, Germany, India, Ireland,Italy, Japan, Mexico, the Netherlands, Norway, Poland, Portugal, Romania, Russia, South Africa, Spain,Sweden, Switzerland, Turkey, the UK and the US.Finaccord’s definition of commercial non-life insurance includes property, motor, liability, MAT, legalexpenses and other forms of commercial non-life insurance such as trade credit and surety. It excludesaccident and health as well as life insurance and other forms of employee benefits. It also excludesreinsurance, wholesale insurance and income generated by brokers from underwriting or fromintermediating non-insurance financial products.Sample graphics from the research, showing geographical splits for global commercial non-life insurancebroking revenues in 2008, 2012 and 2016, and the estimated shares of global commercial non-lifeinsurance broking revenues held by Aon, Marsh and Willis in 2012.
Note: market value, 2012 = USD 46.26 billionSource: Finaccord Global Commercial Non-Life Insurance Broker researchShare of global commercial non-life insurancebroking revenues for Aon, Marsh and Willis, 2012Aon, 13%Marsh, 11%Willis, 3%Otherbrokers, 73%Note: market value, 2008 = USD 41.90 billion; market value, 2012 = USD 46.26 billion; forecastmarket value, 2016 = USD 55.43 billionSource: Finaccord Global Commercial Non-Life Insurance Broker researchGlobal commercial non-life insurance brokingrevenues, geographical split for 2008, 2012 and 20160%20%40%60%80%100%201620122008Europe North America Rest of the world