2016 BPS Study

Brokerage Industry Perspectives How Best Practices agencies are leading the way

The U.S. insurance distribution landscape is changing more rapidly than perhaps ever before. This rapid change is  widening the gap between the industry’s winners and losers. It is increasing the cost of inaction, bad strategy and poor  execution. As a result, agency leaders are being forced to think more strategically and respond more aggressively than in  the past.   Our industry faces several challenges – some coming from within the industry, while others are being driven by external  forces. Uncertainty abounds. Yet, in the midst of this uncertainty, a group of dynamic, industry‐leading firms is charting a  course for future success.  

The four key challenges facing the insurance brokerage industry are as follows: 

1) Growth is slowing 

2) Consolidation is occurring at a record pace 

3) The workforce is aging 

4) New technologies threaten the traditional broker model 

This year’s crop of  BPS  agencies are not simply high‐performers, they are truly industry leaders, fighting through these  challenges to create value and opportunity. 

Key Challenge #1: Growth is Slowing

Agency growth has been slowing for three straight years. The average  Best Practices  firm grew organically by 6.9% in  2015, down from the recent high of 9.0% in 2012.   

Organic Growth

12.5%

9.0%

8.2% 8.0%

8.0%

6.9%

4.5%

3.3%

1.1% 1.2% 1.1%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: Best Practices Study, All Agencies

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