Report prospectus commercial_non-life_insurance_brokers_southern_western_europe

Commercial Non-Life Insurance Brokers in Southern and Western Europe

© Finaccord Ltd., 2012

Expertise in financial services Web: www.finaccord.com. E-mail: [email protected] 1

Commercial Non-Life Insurance Brokers

in Southern and Western Europe

Report Prospectus

July 2012

http://www.finaccord.com/

mailto:[email protected]




Prospectus contents

What is the research?

What methodology has been used?

What is the report structure?

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 is the cost and format?

How can the research be purchased?

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What is the research?

Finaccord’s report titled Commercial Non-Life Insurance Brokers in Southern and Western Europe

and the BrokerBASE™ that accompanies it investigate the importance of brokers in the distribution

of non-life insurance for businesses in eight countries of this European region. Brokers are the most

important single distribution channel for this industry in the region, and Finaccord’s research

indicates that fees and commissions earned by brokers from commercial non-life insurance in

Southern and Western Europe were worth about EUR 7.12 billion in 2011. Moreover, brokers are

increasing their share of this market in some countries and are expected to maintain their overall

share in future, in spite of the challenging economic circumstances.

This report first provides unique data for the size, segmentation and growth of the commercial non-

life insurance market itself in Belgium, France, Ireland, Italy, the Netherlands, Portugal, Spain and

the UK. It then quantifies the share of this market that is intermediated by brokers and ranks the

leading brokers in each country, with coverage of between 15 and 60 depending upon the country,

according to their revenues from commercial non-life insurance, excluding income from other

activities. This analysis is based on an investigation covering some 285 brokers across the region,

making it by far the most detailed and comprehensive study of this market ever published and

building upon Finaccord's original report on the subject published in 2009.






What methodology has been used?

Finaccord’s investigation into commercial non-life insurance brokers in Southern and Western Europe

was carried out between March and May 2012. The core of this research was an analysis of leading

brokers in each country that combined telephone 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 whatsoever are revenues from commercial non-life insurance

shown separately from personal lines, life insurance and pensions, and employee benefits. Therefore,

this study provides 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 are the key regulatory issues in each country?

• What proportion of business was handled by brokers in 2011 and how has this changed since 2007?

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

The BrokerBASE™ ranks the top 15 to 60 commercial non-life brokers per country,

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

• What are the main strengths and areas of specialisation of these leading brokers?

• How concentrated or fragmented are commercial non-life insurance broking markets?

• How can commercial non-life insurance broking markets be expected to develop up to 2015?






What is the report structure?

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. Regional Overview: an overview of the market for commercial non-life insurance brokers in

Southern and Western Europe including estimates for the size, segmentation and growth rate of the

commercial non-life insurance market itself, the share of this market that is distributed by brokers

and how this has changed since 2007, market concentration both in overall terms and for Aon,

Marsh, JLT, Towergate and Willis specifically, and the outlook to 2015.

3. Belgium: an in-depth analysis of the market for commercial non-life insurance broking in Belgium

including: key regulatory developments; quantification and segmentation of commercial non-life

insurance from 2007 to 2011; brokers’ share of this market and quantification of broker fees and

commissions from commercial lines; analysis of broker market concentration; ranking of the leading

commercial non-life insurance brokers in Belgium by revenues; additional comments concerning

broker distribution strategies and specialisation; and forecasts for commercial non-life insurance

premiums, brokers’ market share and brokers’ revenues up to 2015.

4 - 10: France, Ireland, Italy, the Netherlands, Portugal, Spain and the UK (structure as for Belgium).





Expertise in financial services Web: www.finaccord.com. E-mail: [email protected]

Country BrokerBroker network affiliation

/ strategic partnership

Total number of

employees, 2011

Commercial non-life

broking revenues, 2011

(EUR million)

In-country

ranking 2011

In-country

ranking 2007

Netherlands Raetsheren Van Orden AESIS 60 11.55 8 11

France Rambaud Labrosse Euribron 49 5.31 28 21

UK Reich Insurance Group 78 10.13 34 n/a

Spain RSM Correduría de Seguros 60 2.32 23 20

Italy S&B Essebi Insurance Broker Consorzio Brokers Italiani 25 2.69 36 29

6

What does the BrokerBASE™ deliver?

View broker network

affiliations / strategic

partnerships

See change in

broker ranking,

2007 to 2011

Select country

Select broker

Note - The BrokerBASE™ also includes each broker's website and UHC (ultimate holding company) if relevant plus

entries for whether they have a specialist focus by product, client sector, client size and / or region and whether their

transaction capability is purely offline, purely online or mixed.

Source: Finaccord BrokerBASE™

Appreciate size of broking

revenues from commercial

non-life insurance






What does the market data annexe deliver?

COUNTRY X

1) Size, segmentation and growth of the commercial non-life insurance market, gross direct written premiums, 2007 to 2011

EUR million 2007 2008 2009 2010 2011Nominal

CAGRReal CAGR

Motor 700 691 707 669 707 0.2% -1.9%

Property 653 680 689 705 725 2.6% 0.4%

Liability 436 449 461 471 485 2.7% 0.5%

Legal expenses 282 294 311 322 331 4.1% 1.8%

MAT 131 129 123 125 129 -0.5% -2.6%

Other 437 452 452 483 496 3.2% 1.0%

Total 2,639 2,695 2,742 2,774 2,873 2.1% -0.1%

2) Size of the commercial non-life market, brokers' share of this market and revenues earned from it, 2007, 2011 and 2015

EUR million / % 2007 2011 2015

Nominal

CAGR

2007-2011

Nominal

CAGR

2011-2015

Commercial non-life premiums 2,639 2,873 3,237 2.1% 3.0%

Brokers' share of commercial

non-life premiums 47.6% 54.0% 60.0%

Brokers' revenue from

commercial non-life premiums 204 211 264 0.9% 5.8%

3) Market concentration measured as % of revenues earned from commercial non-life insurance broking, 2007 and 2011

Share of broking market 2007 2011

Top 3 brokers 28.4% 31.9%

Top 10 brokers 43.7% 47.5%

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.

In conjunction with the full overview report,

the market data annexe also includes a

series of ten tables that make comparisons

across all eight countries of various key data

points contained in the report.

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.






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 this region?

• 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 15 to 60 brokers in each country specifically for commercial non-life

insurance business, with estimates for the revenue 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 Aon, Marsh, JLT, Towergate and Willis, 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 this report in one or more of the following ways:

• quantify the size and dynamism of the broker market for commercial non-life insurance in

Southern and Western Europe;

• compare eight countries in a single comprehensive source of information that uses a uniform

methodology to size the underlying commercial non-life insurance market and to quantify brokers’

share of distribution;

• assess a range of potential business opportunities: from selecting the territory that offers the best

prospect for expansion, to targets for acquisition, to niche product development and ideas for

distribution partnerships;

• understand the competitive landscape in each country through its market concentration, the

importance of international brokers, and brokers' distribution strategies;

• identify the leading brokers in each country or across this European region as a whole, with

coverage of competitors such as Cabinet Bessé, Gruppo GPA, Lockton, Meeùs and Verspieren.






Who can use the research?

1. Insurers: this report provides a unique analysis of the importance of brokers specifically for

commercial non-life insurance, country by country. It will help you to judge if you have the right

distribution strategy for your business in each geography, and to identify if you are acquiring an

appropriate volume of business with each of the leading brokers.

2. Brokers: this report enables you to quantify your market share specifically for commercial non-

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

coverage of eight countries in the region 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 European 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 in Europe, saving time and effort on researching the subject yourself.






What are some of the key findings?

Source: Finaccord Commercial Non-Life Insurance Broker Survey

1. Across Southern and Western Europe as a whole, the leading five groups held a

share of broking revenues from commercial non-life insurance of around 41.8% in 2011

Aon, 15.0%

Marsh, 11.4%

Willis / Gras Savoye, 9.3%

JLT / March-JLT / Marine & Aviation JLT / Siaci Saint Honoré, 3.4%

Towergate, 2.6%

Other, 58.2%






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

2. A fast-deteriorating environment brought about significant consolidation in

Spain's market for commercial non-life insurance broking between 2007 and 2011

Source: Finaccord analysis

32.9%

41.2%

48.3%

57.9%

0%

20%

40%

60%

80%

100%

2007 2011

Top 3 brokers Top 10 brokers

% share of commercial non-life insurance broking revenues







3. Generally speaking, brokers are most likely to develop marketing strategies characterised

by product or client sector specialism and relatively few have an online sales capability

International

networks

Regional

focus

Product / client

specialisms

Online

transaction

Belgium 2 2 0 France 1 1 3 1 Ireland 2 0 2 1 Italy 1 2 2 0 Netherlands 1 2 1 0 Portugal 2 0 1 0 Spain 1 1 3 0 UK 1 3 1 Total 1 1 2 1

Key:

= 0% of brokers with distribution strategy

= 1% to 25% of brokers with distribution strategy



4 = 76% to 100% of brokers with distribution strategy

Source: Finaccord Commercial Non-Life Insurance Broker Survey

0

1

2

3

2

2







4. Key findings from the executive summary include:

• Finaccord estimates that the total revenues earned by commercial non-life broking in 2011 were

EUR 7.12 billion, of which EUR 3.06 billion came from the UK alone, or 42.9% of the region's total;

• brokers distributed 76.5% of commercial non-life insurance premiums across Southern and

Western Europe in 2011, taken as a weighted average across eight countries;

• in real terms (once inflation has been taken into account), brokers' revenues fell between 2007

and 2011 in all countries, with the steepest drops being recorded in Spain and Ireland (with

compound annual rates of decline of 7.4% and 5.4%, respectively)

• the leading trio of Aon, Marsh and Willis (including Gras Savoye) accounted for 35.7% of all

commissions and fees paid for commercial non-life insurance broking in this region in 2011

• brokers' revenue from commercial non-life insurance is expected to rise only in the UK and Ireland

between 2011 and 2015, by 1.6% and 0.6% respectively, as a compound annual growth rate in real

terms - a difficult underlying commercial non-life insurance market will make life tough for brokers

elsewhere.






What is the cost and format?

Commercial Non-Life Insurance Brokers in Southern and Western Europe is available as a standard

Adobe Acrobat PDF document and / or hard copy. The BrokerBASE™ that accompanies it at no further

charge is in Microsoft Excel format. Costs for this research set, a sister title on the same subject, country-

specific studies on the same subject, and other related titles available at the time of publication are as

follows:

For UK-based clients, VAT 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, at the prevailing exchange rate, if preferred.

REPORT PRICE *

GBP 2,495

GBP 2,495

GBP 595

GBP 1,495

GBP 2,995

GBP 2,995


Commercial Non-Life Insurance Brokers in Northern, Central and Eastern Europe

Commercial Non-Life Insurance Brokers in Austria, Belgium, the Czech Republic etc. *

Affinity and Partnership Marketing in UK Commercial Non-Life Insurance

Fleet Insurance and Assistance in Europe

Professional Indemnity Insurance in Europe

* country-specific reports are available for a total of 20 European countries in total






How can the research be purchased?

Simple. Just go to the relevant area of the Finaccord web site available at

www.finaccord.com/order_eu_cib.htm and fill in the online order form, clearly indicating:

• report required

• type of corporate user licence, if required *

• billing name

• address and e-mail address

• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please 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

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.



http://www.finaccord.com/order_eu_cib.htm







Report prospectus commercial_non-life_insurance_brokers_southern_western_europe

Economy & Finance

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