Changes: Consolidators and The New Breed of Insurance Brokerage
13 November 2020
By Howard Pepper
Managing Director, Momentum Broker Solutions
The recent acquisition by consolidators of two of the bigger names in Leicester, my local marketplace, Brokerbility and Erskine Murray took me back to when I first started in the broking sector in Leicester. Virtually all the brokerages around at that time have disappeared, many have been purchased by consolidators.
Consolidation is part of the natural growth cycle in our industry – 40% of M&A deals in 2019 involved a market consolidator. Eventually faced with the many choices available, some brokers will realise the capital value of their hard work, with a sale being the most obvious exit.