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
Intermediaries
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.
Recent
Acquisitions
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
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