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Brokerage consolidation could shift reliance on wholesalers
In an Insurance Business America LinkedIn poll, 43% of respondents said consolidation would reduce retail reliance on wholesalers somewhat.
Insurance Business America reports that industry readers expect brokerage consolidation to change distribution dynamics, but they do not broadly anticipate a wholesale channel exit. A LinkedIn poll asked whether consolidation would reduce reliance on wholesalers, and the results showed 43% said the impact would be somewhat and 20% said it would be limited to simpler risks, while only 7% expected a significant decline and 28% said reliance would not really change.
The outlet ties the debate to consolidation deals that give larger brokers more specialty capabilities in-house and provide retailers access to functions that historically sat with intermediaries. Insurance Business America highlights Aon’s planned $17 billion acquisition of USI Insurance Services as a recent example, describing USI as having about $3 billion in annual revenue and more than 10,500 employees, along with a sizeable middle-market presence in the US.
Insurance Business America also notes that Aon has pointed to USI’s presence in excess and surplus lines as part of the deal rationale. The piece adds that the transaction follows Aon’s $13 billion purchase of NFP in 202
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