Over 20% of brokers may be sold or merged

A survey conducted by The Institute of Insurance Brokers (IIB) members has indicated that over 20% of broker firms may be sold or merged in the next few years. The survey also highlights that 72% of independent broking firms think insurers buying into the industry will lead to unfair competition.

A spokesperson for the IIB stated that the bulk of independent broking firms are concerned about insurers purchasing their rivals. They are worried that preferential rating would result in the loss of accounts they have held and serviced well for several years.

However, it is in the early stages and there is no proof of such practices as yet. An appropriate commercial response will have to be considered if preferential rating becomes an issue.

The IIB concluded that consolidation within the sector is certain to continue rapidly, particularly with so many broking executives approaching retirement age – this will have membership number implications for organisations like the IIB.

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