United Kingdom (UK) Insurance Brokers Landscape by Personal Lines and SME Commercial Lines, and Future Market

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UK Insurance Brokers Market Report Overview

Brokers play a crucial role as a primary distribution channel for both commercial (including SMEs) and personal insurance. They are increasingly adopting key service features to enhance operations and improve customer experience. However, AI presents both opportunities and challenges for brokers in the insurance industry.

The “United Kingdom (UK) Insurance Brokers” report explores the broker landscape in the UK for both personal and SME commercial insurance. It examines the leading brokers in the UK and analyzes consumer and SME purchasing preferences and attitudes within the broker channel. Additionally, the report provides insights into the future market, identifying potential threats and opportunities for brokers moving forward.

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Leading Players ·       Marsh McLennan

·       Howden

·       Ardonagh Group

·       WTW

·       Arthur J. Gallagher

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UK Broker Landscape

In 2022, brokers held a share of more than 33% in the personal insurance distribution landscape, while on the commercial insurance front, they commanded a share of more than 83%. This highlighted the pivotal role of brokers in commercial insurance compared to personal insurance. Brokers are more important for commercial insurance as they introduce specialized expertise and value to its complex landscape, where tailored solutions and personalized service are often paramount.

Commercial Lines Distribution, 2018-2023e (%)

Commercial Lines Distribution, 2018-2023e (%)

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UK Insurance Brokers – Personal Lines

The preferred method of purchase within the broker channel is over the phone. This highlights the value of personalized guidance and assistance from brokers, which can be essential amid the cost-of-living crisis.

Since 2021, the growing ease of online transactions and improved mobile website experiences resulted in a rise in purchasing insurance through brokers using smartphones and tablets. In 2022, economic challenges pushed consumers towards more affordable options such as the direct channel. In addition, technological advancements may have made direct purchasing easier. Hence, the broker channel’s personal lines share dropped.

Method of Purchase through the Broker Channel, 2021-2023 (%)

Method of Purchase through the Broker Channel, 2021-2023 (%)

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UK Insurance Brokers – SME Commercial Lines

Most purchases via the broker channel take place online. The COVID-19 pandemic accelerated the ongoing digitalization which further strengthened the transition to online sales. In 2023, there was a rise in insurance bought over the phone compared to the prior year. This suggests that SMEs are increasingly looking for personalized advice from brokers, most likely fueled by the cost-of-living crisis and increasing risks.

Personalized advice and tailored solutions from brokers to SMEs are particularly crucial for complex products such as cyber insurance. SMEs often rely on brokers to navigate the intricacies of insurance policies and ensure they have adequate coverage.

Method of Purchase through the Broker Channel, 2022-2023 (%)

Method of Purchase through the Broker Channel, 2022-2023 (%)

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UK Insurance Brokers – Competitive Landscape

Marsh McLennan was the dominant broker in the UK commercial insurance market in 2023

The top five brokers in the UK are:

  • Marsh McLennan
  • Howden
  • Ardonagh Group
  • WTW
  • Arthur J. Gallagher

In 2023, the major UK brokers saw revenue growths largely due to inflation, which drove premium increases and heightened demand for insurance as a hedge against financial risks. Market consolidation, with smaller firms merging or being acquired, also boosted major brokers’ market shares and client bases.

UK Commercial Insurance Brokers Analysis, 2023 (%)

UK Commercial Insurance Brokers Analysis, 2023 (%)

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Scope

• Brokers play a crucial role as a primary distribution channel for both commercial (including SMEs) and personal insurance.

• In 2023e, GlobalData expects brokers will have accounted for 33.7% of personal lines distribution and 82.8% of commercial insurance distribution.

• 43.7% of SME insurance was purchased through brokers in 2023.

• The five leading brokers in the UK generated GBP7.3 billion in revenue in 2023.

• The preferred method of purchase within the broker channel is over the phone, with 37% of consumers citing this.

Reasons to Buy

  • Understand the key consumer and SME switching and purchasing behaviors in the channel.
  • Discover who the market leaders are and learn how they have strategized to achieve their success.
  • Identify the key challenges and opportunities for brokers in the future.
  • Learn about the growth strategies that brokers are looking to adopt.

Marsh
Howden
Ardonagh
WTW
Gallagher
Aon
JLT
Aston Lark
A-Plan
Hencilla Canworth
SIB
Mediass
Markerstudy Group
Stanhope Cooper
Renovation Underwriting
MCMM
Lifesure Group
Hastings Direct
SAGA
AA
Aviva
Policy Expert
Staysure
Avanti
Petplan
Argos
Zurich
Simply Business
BUPA
LV=
AXA
Swinton

Table of Contents

Table of Contents

1. Executive Summary

2. The UK Broker Landscape

3. Personal Lines

4. SME Commercial Lines

5. Going Forward

6. Appendix

Frequently asked questions

United Kingdom (UK) Insurance Brokers Landscape by Personal Lines and SME Commercial Lines, and Future Market standard reports
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