P&C Revenues

Top P&C Brokers Ranked

The top 150 brokers earned total global revenues of $28.5 billion from commercial P&C activity.
By: | November 11, 2014 • 5 min read

A first-ever ranking of the world’s top 150 brokerage groups by revenues earned from commercial non-life (P&C) insurance has been calculated by London-based market research firm Finaccord.

The top 150 brokers earned total global revenues of $28.5 billion from commercial P&C activity — or 59 percent of the estimated $48.5 billion total global revenues in 2013, according to the firm.

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Aon ranked at the top of the list, with commercial lines revenue of $6.1 billion worldwide, followed by Marsh at $5.1 billion.

Overall, the top 15 brokerage groups together earned revenues of $20.9 billion (or 43 percent) of the worldwide market.

Finaccord’s research also showed that across the world’s top 150 commercial non-life insurance brokerage groups, 67 (45 percent) were headquartered in the U.S., with a further 24 based in the U.K., 14 in France, 12 in Germany and eight in Canada.

“The strong presence of North American brokers in the ranking is primarily due to the huge size of the U.S. and Canadian commercial property and casualty markets, and the fact that brokers, including independent agents, dominate distribution in both the U.S. and Canada,” said Bernd Bergmann, a consultant at Finaccord.

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The Finaccord ranking of top 15 commercial non-life (P&C) insurance brokers by estimated commercial non-life broking revenues in 2013, in order, are:

  • Aon: $6.1 billion
  • Marsh: $5.1 billion
  • Willis: $2.05 billion
  • Arthur J. Gallagher & Co., $1.2 billion
  • Wells Fargo Insurance Services: $960 million
  • BB&T Insurance Services: $932 million
  • HUB International: $932 million
  • JLT Group: $878.6 million
  • Lockton: $791 million
  • Gras Savoye: $464.7 million
  • USI Insurance Services: $390.4 million
  • Brown & Brown: $382.4 million
  • Alliant Insurance Services: $288.2 million
  • Towergate: $267.7 million
  • OAMPS Insurance Brokers: $210 million

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Mike O’Connor, CEO of Aon Risk Solutions in Chicago, said the magnitude, complexity and speed of risk are increasing everywhere.

“Even without the uncertainty that is caused by natural catastrophe, economic slowdown, or legislative and regulatory changes, companies are operating in a challenging environment where the pace of change is unparalleled,” O’Connor said.

“Protecting people and property has become more difficult,” he said. “Clients want solutions that will enable cross-border trade and alleviate security concerns in addition to solutions that will help them seek rapid recovery and capital after natural catastrophes.”

Bergmann noted that “a number of large brokers in North America are driving their growth through acquisitions, while the majority of their counterparts in Europe rely more on organic growth.”

Martin Mankabady, partner, Clyde & Co.

Martin Mankabady, partner, Clyde & Co.

“I would say in terms of M&A activity, it is still quite patchy,” said Martin Mankabady, London-based partner in the insurance group at international law firm Clyde & Co. “We still haven’t hit the levels of activity we saw prior to the global financial crisis.

“In large part that is due to lack of confidence and market sentiment. The M&A market is particularly sensitive to that, and with the tensions at this moment in the world, plus talk of certain economies slowing down, all of that inevitably has an impact on M&A.”

He said “real pressure on income and margins being squeezed” has led some brokers to be active in the M&A market. Also driving M&As are brokers looking to achieve greater scale and what they hope will be more clout in the market.

“You can’t help but think that [the small and midsize] market should be ripe for consolidation — that could help them achieve some economies of scale and to potentially be more competitive,” said Mankabady.

“But we haven’t seen that wave of consolidation though there is some talk of it,” he said. “You may see a ripple of consolidation, but I’m not sure it will be a wave.”

He noted that “a number of sellers don’t want to sell unless they have to as they’re worried about not getting the right price, and buyers are worried about overpaying.”

Acquisitions Fuel Growth

Finaccord noted that 61 of the 150 brokers made at least one acquisition relevant to commercial brokerage business lines, and 10 made at least 10 such acquisitions between January 2012 and June 2014.

UK-based Towergate ranked first with 48 acquisitions, ahead of Arthur J. Gallagher & Co. and HUB International with 43 each, USI Insurance Services with 27 and AssuredPartners with 26.

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“The global ranking may see some important changes in the future if competitors such as Arthur J. Gallagher & Co., HUB International and Towergate continue purchasing other brokers at such a rapid rate,” said Bergmann.

“In particular, given some of the acquisitions announced recently by Arthur J. Gallagher & Co, which include Noraxis Corp. in Canada and The Oval Group in the UK as well as OAMPS Insurance Brokers, the U.S.-based brokerage may substantially shorten the gap to Willis which is currently ranked third,” said Bergmann.

Commercial Lines Revenue Breakout

For a majority of the 150 brokers in the ranking, commercial non-life insurance is the most important source of revenues.

Of those 150 brokers, 22 of them earned more than 90 percent of their total revenue from commercial lines in 2013, while this activity made up at least half of the revenue for 122 brokers.

When ranked according to the proportion of commercial non-life brokerage revenues secured outside of their home market, Willis came in first with a figure of 90 percent in 2013.

Willis was followed by Howden Broking Group (80 percent); JLT Group (78 percent); and RKH Group (74 percent), meaning that the top four groups by this measure were all UK-based firms.

In total, nine groups earned more than 50 percent of their commercial non-life brokerage revenues from international markets in 2013.

Finaccord is a market research, publishing and consulting company specializing in financial services. It provides information about activity in the UK, Europe and globally.

Steve Yahn was a freelance writer based in New York. He had more than 40 years of financial reporting and editing experience. Comments can be directed to [email protected]

More from Risk & Insurance

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4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

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That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

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Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]