The Lloyd’s of London insurance broking market has seen significant consolidation over the past decade, and the global dominance of Lloyd’s itself is being gradually undermined. This has led many to expect the demise of the traditional smaller Lloyd’s broker.
However, the reality is that the same reasons that have driven consolidation by the top-tier brokers, and the indirect impact of this consolidation, are creating new opportunities for strong midsize brokers and investors in the space. In this Executive Insights London partners Peter Ward and Ashish Khanna look at the evolution of the Lloyd’s markets and the position of Lloyd’s today, and explain why the current environment presents an exciting time for ambitious mid-tier players.
L.E.K. believes there are 5 principal factors driving expansion opportunities for mid-tier Lloyd’s brokers:
- The nature of the relationship business
- Advantages of the entrepreneurial spirit
- Ability to attract the industry’s star performers
- Opportunities for acquisitive growth
- Insurer preferences
The key challenge for mid-tier company success is developing the right business strategy. It’s a complex exercise but those who think that only the giants have room for expansion are mistaken.