Top 10 Largest Insurance Brokerages in the World
The world's 10 largest insurance brokerages appear in the table below. The rankings are derived from revenue generated in 2019. The data and rankings were published by A.M. Best, a credit rating company that issues reports on the financial stability of insurers.
Insurance brokers act as intermediaries between insurance companies and insurance buyers. While they perform many of the same functions as insurance agents, they differ from agents in that they act in the interest of insurance buyers. Agents sell policies under contractual agreements with the insurance companies they represent.
Unlike agents, brokers have no authority to bind insurance coverage or issue policies. To initiate coverage on a client's behalf, a broker can ask an underwriter at the insurer to issue an insurance binder. Alternatively, the broker can issue the binder and then request a signature from an underwriter. A binder issued by a broker will not become valid (and no coverage will be initiated) until the document is signed by an authorized representative of the insurer.
Broad Range of Services
Large brokers provide a broad range of services. While the specific services provided vary from broker to broker, many offer the following:
o Risk management services
o Loss control services
o Claims management services
o Private client services (personal coverages for wealthy individuals)
o Data and analytics (such as loss forecasting and benchmarking)
o Employee benefits
o International insurance, such as foreign workers compensation coverage
o Captives and other forms of alternative risk transfer
o Affinity programs (insurance programs designed for groups, such as franchises)
o Mergers and acquisitions (help facilitate transactions and manage risks)
o Terrorism and political risk (help manage risks and secure insurance)
Marsh, Aon, Willis Towers Watson, Gallagher, and several other brokerages on the Top 10 list operate globally. Aon and Willis, are based in London while the other companies are headquartered in the U.S. Many maintain branch offices in foreign countries. Examples are Marsh, AON, and Willis. Others, such as USI, operate mainly in the United States.
Many brokers on the list are public companies listed on the New York Stock Exchange and NASDAQ, including the top four entries, while others are private companies.
Within the last few years, several notable acquisitions have occurred in the insurance brokerage industry. One of the largest took place in December of 2017, when USI Holdings acquired various insurance operations from Wells Fargo Insurance Services. USI purchased Wells Fargo's commercial insurance brokerage and consulting, employee benefits, and property/casualty national practices. It also obtained the small business insurance and student insurance units, and a program administrator called Safehold Special Risk.
In April of 2019, Marsh completed its acquisition of Jardine Insurance Brokers, a multinational brokerage based in London. According to Mercer, a subsidiary of Marsh's parent company, the new combined firm will have operations in more than 130 countries.1
The Top 10
Here are the largest 10 brokerages listed in descending order based on 2019 revenue. Note that the list includes insurance brokerages only. The largest 25 insurance agencies are included in a separate list.
1. Marsh & McLennan Cos. Inc. Revenue: $17 billion
2. Aon P.L.C. Revenue: $11.0 billion
3. Willis Towers Watson P.L.C. Revenue: $9.04 billion
4. Arthur J. Gallagher Revenue: $7 billion
5. HUB International Revenue: $2.4 billion
6. Brown & Brown, Inc. Revenue: $2.39 billion
7. Truist Insurance Holdings Inc. Revenue: $2.27 billion
8. Lockton Inc. Revenue: $1.88 billion
9. Acrisure Revenue: $1.88 billion
10. USI Insurance Services L.L.C