Brokerage the most attractive insurance subsector
Friday, 06 16 2017, Category: Insurance and Reinsurance, Country: World
The broker community has remained a safe haven within the P&C re/insurance market, buoyed up by a hedge of commission rates, near-term positive organic growth prospects, and a strong bargaining position fuelled by the stiffly competitive soft market environment.
However, looking farther ahead, the increasingly blurred roles of brokers and re/insurers could create stiffer competition, although brokers have been taking effective measures to improve efficiency and secure their position, said financial services specialists Keefe Bruyette & Woods in a recent report on P&C brokerage.
“We maintain our positive outlook on the insurance brokers as the most attractive sub-sector within P&C insurance, especially since commission rates should be a natural revenue hedge if (as we expect) soft pricing persists in most lines.”