The study, conducted by Finaccord, predicts a future decline in value
The UK general insurance broking market has seen a decline in value year-on-year of 2.5% after inflation, despite rising to £4.6bn in 2014 from £4.55bn in 2010.
The findings come from two research studies conducted by Finaccord into the market size of the UK non-life insurance broking market.
Despite this decline, Finaccord believe that the market remains dynamic, with brokers adapting to direct marketing and aggregator sites, as well as manufacturing growth through acquisitions.
Finaccord director Alan Leach said: “While the market might appear stagnant at first glance, it masks considerable dynamism at the level of the specific competitors in it. Notably, merger and acquisition activity has been widespread in recent months and successful brokerages are achieving impressive rates of growth by implementing differentiated strategies.”
The study found that the personal lines market is worth £2.1bn, while commercial lines broking makes up around £2.54bn of the overall market.
The study forecasts that the market will be worth around £4.7bn in 2018, and will continue to decline in real terms. It prescribes this continued decline down to a limited scope for expansion and a struggle for organic growth.
Leach added: “To compete successfully, non-life insurance brokers in the UK will have to carry on placing a high emphasis on innovation in their traditional field of broking.”