At present, broker consolidators control £3.4bn in gross written premiums (GWP). However, Datamonitor estimated that if the consolidators hit their growth targets, they would control £7.6bn in GWP, representing 13.7% of the total UK insurance market by 2010.

Andrew Birkett, analyst at Datamonitor and author of the report, commented: “The consolidators will undoubtedly increase their already significant influence over the UK commercial insurance market over the coming years, and therefore it is important for insurers to developed good relationships with these organizations.”

Adding that consolidation is likely to see major changes in the insurance industry, Birkett said: “Most of the major consolidators are looking for an exit strategy over the next few years, and therefore there will be significant commercial opportunities for potential acquirers such as insurance companies, brokers and even banks.”