Key trends and challenges in the UK insurance broking market

With a third wave of PE backed insurance broker consolidators emerging, Hines has assessed the trends in the market and the potential challenges and opportunities that lie ahead. We have also spoken to a number of senior figures within the industry and received valuable insight.

We pose the following questions:

• Where are we in the consolidation cycle and have valuations peaked…or will the ongoing PE competition in the market and the availability of debt capital on attractive terms continue to drive valuations?
• How will impending regulatory changes impact the industry – both operationally and financially?
• What is driving the divergence in valuation levels between large consolidation vehicles versus smaller standalone brokers?
• How do consolidators identify targets, and what do they look for?
• How important is integration and synergy generation for broker consolidators?

Jack Stewart, Partner at Hines, commented:

“As we begin a new wave of consolidation in the UK insurance broking market, we have paused to assess the direction of travel and have spoken to senior industry figures to obtain their views on key themes and what the future may hold.”

An extract of our report is available via the link below. If you would like to receive the full report or speak to us directly please contact us.