AM Best released an interview with this author at NAPSLO last week where we discussed insurance agency/broker consolidation. The trade press reports on the highly active M&A market for insurance agencies and brokers, with acquisitions of agencies and brokers announced most every day. However, new insurance agencies and brokers are being formed every day and are not being covered by the trade press. Comments from the interview:
What you don't read about are the new [insurance agent] operations being formed every day… The barriers to entry used to be systems, compliance and markets... It is a lot easier these days for new [insurance agent] operations to form, to get into business and to be successful. (starting at about 2:00 in the interview)
The professional liability market is seeing healthy competition; it is an underwriting driven market; it is a stable market with competitive pressure.
Technology is creating huge opportunities in professional liability for the excess & surplus (E&S) lines market.
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