UK Insurance Brokers Report 2024

This 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.

In 2022, brokers commanded a significant 33.6% share of the personal insurance distribution market. Over the observed period, brokers have consistently been a primary player in personal insurance, maintaining approximately one third of the market share. Projections for 2023 suggest brokers have held steady at 33.7%. On the commercial insurance front, brokers have demonstrated substantial dominance, holding an 83.1% share in 2022, underscoring their critical role in this sector. Looking ahead to 2023, it is projected that brokers will have seen a slight decline to 82.8%. This trend is attributed to the growing preference for digital channels among SMEs.

Moreover, the five leading brokers generated revenues of GBP7.3 billion in 2023, an increase of 26.8% when compared to GBP5.8 billion in 2022. In 2023, 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.

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.