The insurance industry, specifically the independent agencies, are under threat and are responding by forming the largest independent brokerages ever - the recent announcement of Aon and Willis Towers Watson fast following the Marsh-MacLennan JLT merger in 2019.
Threats to the independent agencies and brokerages are coming in waves.
- InsurTech companies are forming their own companies to prove the viability of their solutions
- Direct-to-consumer carriers are growing market share while overall growth is relatively stagnant
- Carriers in the independent channels are slow to react and not offering enough digital options for agencies to connect through to their clients
- Agency system vendors are doubling down on process-heavy systems
- Agency connectivity partners are charging fees on both ends of interfaces
By creating these mega-brokerages, interesting opportunities arise to preserve and even extend the influence of the independent channel. The largest opportunities are potentially those alluded to by Greg Case, CEO of Aon (London). “Our combined firm will accelerate innovation on behalf of clients and be better able to deliver more value to all stakeholders. And while we will be bigger, yes, that’s not what this transaction is about. This is about better.”