commercial non-life insurance brokers · australia oct-12 indonesia jul-15 russia jun-16 ......

Commercial Non-Life Insurance Brokers – Global Series Prospectus

© Finaccord, 2016 Web: www.finaccord.com. E-mail: [email protected] 1

Commercial Non-Life

Insurance BrokersWorldwide research across 36 countries

http://www.finaccord.com/

mailto:[email protected]



Prospectus contents

What is the research?

Which countries are covered?

What methodology has been used?

What is the structure of the reports?

What does the BrokerBASE™ deliver?

What does the market data annexe deliver?

What are the key features of the research?

How can the research be used?

Who can use the research?

What are some of the key findings?

What are the prices?

How can the research be purchased?

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What is the research?

Finaccord’s series of country-specific reports about commercial non-life insurance brokers, plus the

BrokerBASE™ datasets and market data annexes that accompany them, investigates the size,

growth and structure of the market for broking of non-life insurance for business, public sector and

not-for-profit customers in 36 countries. Brokers are the most important single distribution channel

for commercial lines in a number of territories; moreover, they are increasing their share of this

market in many countries, often at the expense of tied agents, and are often expected to continue

growing their overall share in future, often in spite of challenging market conditions.

The reports first provide unique data for the size, segmentation and growth of the commercial non-

life insurance market itself in each country. They then quantify the share of this market that is

intermediated by brokers and rank the leading brokers according to their revenues from commercial

non-life insurance, excluding income from other activities. These analyses are based on an

investigation covering over 1,000 brokers around the world, with a total ranging from ten to 80 in

any given country, depending upon the number and importance of brokers in that country. This

makes them by far the most detailed and comprehensive studies of this market ever published.





Which countries are covered?

CountryMost recent

updateCountry

Most recent

updateCountry

Most recent

update

Argentina Jan-13 India Jul-16 Romania Jun-16

Australia Oct-12 Indonesia Jul-15 Russia Jun-16

Austria Jun-16 Ireland Jun-16 Singapore Jul-15

Belgium Jun-16 Italy Jul-16 South Africa Jan-15

Brazil Jan-15 Japan Jan-13 Spain Jun-16

Canada Jan-15 Malaysia Apr-15 Sweden Jun-16

China Jan-15 Mexico Jul-16 Switzerland Jun-16

Czech Republic Jun-16 Netherlands Jun-16 Thailand May-15

Denmark Jun-16 Norway Jun-16 Turkey Jul-16

Finland Jun-16 Philippines Apr-15 UK Jun-16

France Jul-16 Poland Jun-16 USA Jul-16

Germany May-16 Portugal Jun-16 Vietnam May-15





What methodology has been used?

Finaccord’s investigation into commercial non-life insurance brokers is being carried out on an on-

going basis. The core of this research is an analysis of leading brokers in each country that combines

phone interviews with senior executives with published information and company accounts. Reliable

statistics concerning the market share of brokers do not exist in most countries and in no cases are

broking revenues from commercial non-life insurance shown separately from those derived from

personal lines, employee benefits consulting and other activities. Therefore, these studies provide

genuinely unique data to answer the following questions:

• how large is the commercial non-life insurance market in each country and how does it segment?

• what proportion of business is handled by brokers and how has this changed over the last five

years?

• who are the leading brokers in each market, by revenues and employee numbers?

➢ the BrokerBASE™ datasets rank the top ten to 80 commercial non-life brokers per country,

depending on the size of the broker industry in each case;

• what is the approximate business mix of these leading brokers?

• how concentrated or fragmented are commercial lines broking markets?

• how can commercial non-life insurance broking markets be expected to develop in future years?





What is the structure of the reports?

0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale, description of methodology and some definitions.

2. Market Analysis: an in-depth analysis of the market for commercial non-life (P&C) insurance broking in each

country including: regulatory environment; quantification and segmentation of commercial non-life insurance

over a five-year period (mainly 2010-2014 or 2011-2015 depending upon the date of publication) with a

segmentation between liability, motor, property, MAT and other premiums; brokers’ distribution share of this

market and quantification of their total fees and commissions derived from commercial lines; analysis of broker

market concentration as defined by the share of commercial lines broking revenues of the top three and top

ten competitors; ranking of the leading brokers by revenues generated from commercial lines activity;

approximate segmentation of the total broking revenues of the leading competitors between commercial lines,

personal lines, employee benefits plus life / health insurance, and wholesale insurance / reinsurance;

additional commentary concerning the strategies and specialisation of the leading brokers; and forecasts for

commercial non-life insurance premiums, brokers’ distribution share and the value of commercial lines broking

revenues mainly up to either 2018 or 2019 (again depending upon the date of publication).

In addition, for reports being published in 2016, note that the value of both the underlying commercial non-life

insurance sector and the associated commercial lines broking market is segmented by size of insured entity

(i.e. across micro, small, medium, large and very large customers).




© Finaccord, 2016 Web: www.finaccord.com. E-mail: [email protected]

Country BrokerBroker network affiliation

/ strategic partnership

Total number of

employees, 2014

Commercial non-life

broking revenues, 2014

(USD million)

Commercial non-life

broking market share,

2014

In-country

ranking, 2014

Malaysia Transnational Insurance Brokers 48 4.1 3.7% 8

Malaysia Sterling Insurance Brokers BrokersLink 40 4.0 3.6% 9

Malaysia MMS Brokers 34 3.7 3.4% 10

Malaysia CIMB Insurance Brokers 52 3.7 3.3% 11

Malaysia Anika Insurance Brokers WBN 80 3.2 2.9% 12

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What does the BrokerBASE™ deliver? (1)

View broker network

affiliations / strategic

partnerships

See broker

ranking

Select country

Select broker

Source: Finaccord BrokerBASE™

Appreciate size of broking

revenues from commercial

non-life insurance





What does the BrokerBASE™ deliver? (2)

Country BrokerCommercial

insurance

Personal

insurance

EB / life /

health

insurance

Wholesale /

reinsurance

Germany API Assekuranz Partner der Industrie 95-100% 0% 0-5% 0-5%

Germany Gußmann 86-91% 0-5% 9-14% 0%

Germany Robert Schüler 88-93% 0-5% 0-5% 0%

Germany Deutsche Versicherungsmakler 75-85% 0-5% 16-21% 0%

Germany Gebrüder Krose 35-45% 0% 0-5% 50-60%

Source: Finaccord BrokerBASE™

Select broker

Appreciate approximate

percentage of revenues due

to commercial lines broking

Appreciate approximate

percentage of revenues due

to other broking activities

Select country





What does the market data annexe deliver?

For each country, the market data annexe

provides the sample data shown to the left

plus a list of the top ten brokers ranked by

commercial non-life insurance broking

revenues.

This annexe can be used as a convenient

source of data already in Excel format which

means that there is no need for users to re-

enter data from the PDF report into their own

Excel worksheets.

1) Size, segmentation and growth of the commercial non-life insurance gross written premiums, 2011 to 2015

EUR million 2011 2012 2013 2014 2015Nominal

CAGRReal CAGR

Motor 4,393 4,733 5,665 5,532 5,382 5.2% 3.7%

Property 7,523 7,658 7,863 7,923 8,091 1.8% 0.3%

Liability 2,800 2,720 2,720 2,800 2,800 0.0% -1.5%

MAT 1,100 1,000 1,100 1,000 1,000 -2.4% -3.9%

Other 3,609 3,690 3,960 4,198 4,344 4.7% 3.8%

Total 19,425 19,801 21,307 21,454 21,617 2.7% 1.2%

2) Size of the commercial non-life market, brokers' share of this market and revenues earned from it, 2011, 2015 and 2019

EUR million / % 2011 2015 2019

Nominal

CAGR

2011-2015

Nominal

CAGR

2015-2019

Commercial non-life premiums 19,425 21,617 23,954 2.7% 2.6%

Brokers' share of commercial

non-life premiums77.6% 76.4% 76.0%

Brokers' revenue from commercial

non-life insurance1,847 2,031 2,212 2.4% 2.2%

3) Market concentration as measured by combined share of commercial non-life broking revenues of top three and top ten brokers, 2015

Share of broking market 2011 2015

Top three brokers 39.9% 40.3%

Top ten brokers 57.5% 72.2%





What are the key features of the research?

Key features of this research include:

• analysis of market size, growth, segmentation and trends for commercial non-life insurance

premiums: how much is the underlying insurance market worth in each country?

• quantification and forecast of the share of commercial non-life insurance premiums distributed by

brokers, the revenues they earn from commercial lines, and the importance of this sector to brokers;

• identification of the top ten to 80 brokers in each country specifically for commercial non-life

insurance business, with estimates for the revenue that they generate from this sector alone and

their total employee numbers;

• detailed information concerning the structure of the broker market, including market concentration

for the top three and top ten brokers, the position of leading international brokers such as Aon,

Marsh & McLennan Companies and Willis Towers Watson, and the role of networks or alliances;

• availability of an accompanying BrokerBASE™ which provides key financial and other metrics for

the brokers included in each country, plus a convenient, supporting market data file, both in Excel

format.





How can the research be used?

You may be able to use these reports in one or more of the following ways:

• quantify the size and structure of both the underlying commercial non-life insurance sector and the

associated commercial lines broking market in each of 20 European countries and 16 major non-

European markets;

• utilise a single comprehensive source of information that deploys a uniform methodology to

quantify brokers’ distribution share in the commercial non-life insurance market and how this has

changed and is likely to change in future;

• understand the competitive landscape for commercial lines broking in each country as defined by

market concentration, the presence of international brokers and the business mix of the leading

competitors;

• identify leading brokers in each country, with coverage of international competitors such as Aon,

Arthur J. Gallagher & Co, Ecclesia Gruppe, GrECo International, Howden, HUB International, JLT,

Lockton, Marsh & McLennan Companies and Willis Towers Watson.





Who can use the research?

1. Insurers: these reports provide a unique analysis of the importance of brokers specifically for

commercial non-life insurance in each country. They will help you to judge if you have the right

distribution strategy for your commercial lines business in each territory and to identify if you

are acquiring an appropriate volume of business with each of the leading brokers.

2. Brokers: the reports enable you to quantify your market share specifically for commercial non-

life insurance, which cannot be done using any other published sources. Moreover, their

coverage of 36 countries helps you to plan international expansion or potential acquisitions,

and to identify your main competitors.

3. Technology companies: the growing importance of online trading of commercial non-life

insurance in certain countries means that there are opportunities for specialised IT service

providers to develop and promote systems that improve broker efficiency, service and broker-

insurer interaction.

4. Management consultancies: are you helping an insurance broker or underwriter with its future

strategy in commercial non-life insurance? Understand the current status of commercial non-

life insurance broking across 36 countries worldwide, saving time and effort on researching the

subject yourself.





What are some of the key findings? (cont.)1. The competitive structure of Poland's market for commercial non-life insurance

broking became significantly more concentrated between 2011 and 2015

Source: Finaccord analysis

0%

20%

40%

60%

80%

100%

2011 2015

Top three brokers Top ten brokers

% share of commercial non-life insurance broking revenues

22.1%

35.5%

47.9%

60.4%





What are some of the key findings?

Source: Finaccord Commercial Non-Life Insurance Broking Survey

Aon, 30.6%

Broker B, 22.4% Broker C, 7.3%

Broker D, 4.2%

Broker E, 4.1%

Broker F, 3.0%

Broker G, 3.0% Broker H, 2.2%

Broker I, 2.1%

Broker J, 2.0%

other,19.1%

2. Aon is the largest commercial lines broker in Singapore, with an estimated 30.6% of the

market, and in total the top ten brokers control over 80% of this market between them





What are some of the key findings? (cont.)

Revenues from commercial

non-life insurance broking

Brokers' share of commercial

non-life insurance premiums

2010 2014 2018

Broking revenues (USD billion) Brokers' share of premiums

3. In South Africa, brokers dominate commercial non-life insurance distribution within a

market that is likely to have been worth around USD 450 million in broking revenues in 2014

Source: Finaccord analysis

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These reports about commercial non-life insurance brokers in different countries around the world

are available as standard PDF documents. The BrokerBASE™ datasets and market data annexes

that accompany them at no further charge are in Excel format. Prices for each country are as

follows:

* For Singapore-based clients, GST at the prevailing rate will be added to the basic price.

Costs quoted are for a single site user licence only.

For a corporate user licence, please see the next slide for further details.

Invoices can be paid in EUR or GBP, at the prevailing exchange rate, if preferred.

What are the prices?

Argentina USD 1,195 France USD 1,195 Portugal USD 895

Australia USD 1,195 Germany USD 1,195 Romania USD 895

Austria USD 1,195 India USD 1,195 Russia USD 895

Belgium USD 895 Ireland USD 895 South Africa USD 1,195

Brazil USD 1,195 Italy USD 895 Spain USD 895

Canada USD 1,195 Japan USD 1,195 Sweden USD 895

China USD 1,195 Mexico USD 1,195 Switzerland USD 1,195

Czech Republic USD 895 Netherlands USD 895 Turkey USD 895

Denmark USD 895 Norway USD 895 UK USD 1,195

Finland USD 895 Poland USD 895 USA USD 1,195

Commercial Non-Life Insurance Brokers in...





How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord website, create your account (if you do not

have one already) and place your order online. Products paid for online by card will be delivered

immediately by e-mail but please allow up to one working day for delivery by e-mail if you choose to

pay on receipt of invoice.

With regards to the corporate user licence, you will be asked to choose one of the following options:

1. One office, one country: no supplement over and above basic cost of reports ordered

2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered

3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered

4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

Alternatively, you can place an order by sending your request to [email protected], clearly

stating the product(s) required, associated price(s) and billing details for eventual invoice or card

payment receipt.




commercial non-life insurance brokers · australia oct-12 indonesia jul-15 russia jun-16 ......

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