The European insurance brokerage industry presents a fascinating paradox: it is at once the world’s second-largest insurance market, with more than €1.5 trillion in premiums, and yet one of the most fragmented in structure, regulation and insurance distribution. Unlike the relatively homogenous markets of the United States and Japan, Europe’s insurance distribution is profoundly shaped by history and fundamental differences in regulation and risk appetite. The result is an industry that is consolidating rapidly under international pressure while still retaining a patchwork of local characteristics that make true uniformity elusive.
A market of global importance
Europe accounts for nearly a third of global insurance premiums. The market’s €1.5 trillion in combined premiums equals about 8.9% of GDP across the 27 EU countries, along with the UK, Switzerland, Norway, Iceland, and Liechtenstein. This makes Europe the world’s second-largest insurance market, positioned between the U.S. (12% penetration) and Japan (7%). Life insurance represents the majority of premiums, about €817 billion (53%), with non-life contributing €710 billion (47%).
Brokers and distribution dynamics
Intermediaries (brokers and tied agents) dominate European insurance distribution. Together they account for 55% of all premiums written, with brokers alone handling nearly one-third of the total. Their role is particularly strong in complex commercial lines and high-net-worth markets, where specialized expertise and tailored solutions remain critical.
Yet the picture varies dramatically across borders. For life insurance, bancassurance dominates in countries like France, Spain, and Italy, where banks still account for more than half of premiums — though their share is eroding as brokers gain ground. In France, for instance, brokers increased their life market share from 12% in 2019 to 18.5% in 2023. In the UK, by contrast, brokers hold an overwhelming 72% share of life distribution, while in the Netherlands they account for 47%.
In non-life insurance, brokers again have a strong presence in northern Europe, such as the UK (54%) and the Netherlands (60.5%, excluding private health insurance), but tied agents dominate in southern markets. Italy exemplifies this divide, with tied agents controlling 77% of non-life distribution and brokers only 10.2%. Germany sits in the middle: brokers represent 41%, tied agents 46%, a balance that has shifted toward brokers in recent years.
In addition, technology is reshaping distribution across the lower end of the market. Online aggregators are increasingly dominant in simple risk products such as motor, travel, and household insurance. Younger consumers in particular gravitate toward price-comparison sites and embedded insurance options. Brokers, by contrast, retain their leadership in complex, multi-line, and corporate coverage.
The rise of MGAs
Managing General Agents (MGAs) are playing a growing role in the European landscape. Once largely confined to niche risks, MGAs now operate across broader categories, often combining underwriting authority with specialized distribution. Premiums placed through MGAs globally have grown by more than 20% annually over the past five years, far outpacing traditional brokers. In Europe, the MGA market remains difficult to measure precisely, but it’s estimated at around 500 sizeable players, with strongholds in The United Kingdom, Germany, the Nordics, and the Netherlands.
Consolidation and cross-border expansion
Perhaps the most striking trend in European insurance broking is consolidation. Private equity (PE) has poured into the sector, accounting for 60–70% of all M&A activity in recent years. In 2024, transaction volumes hit an all-time high, and 2025 is expected to exceed it. The availability of “dry powder” among PE funds, combined with stabilizing capital markets and declining interest rates, suggests further acceleration.
This has fundamentally altered the industry’s structure. Once highly fragmented and local, the market is increasingly dominated by a smaller number of large cross-border players. Many of these are Anglo-Saxon in origin: six of Europe’s top 20 brokers are U.S.-based, and five are UK-based. Yet a new class of continental European champions is emerging as well. Germany’s GGW, France’s Diot-Siaci, and Sweden’s Söderberg & Partners are scaling rapidly with buy-and-build strategies.
Regional stories highlight the uneven pace of change. The UK is the most consolidated and internationalized market, with dozens of PE-backed consolidators and a history of aggressive M&A. Ireland, closely linked to the UK, is following suit. France remains more closed, with strong domestic players like Diot-Siaci leading the market but international entrants beginning to make inroads. Germany, once resistant to consolidation, has now become one of the most active M&A markets, while Italy is seeing a surge of foreign buyers despite its bancassurance dominance. Spain, propelled by rapid premium growth, has drawn strong attention from UK consolidators and Nordic investors. The Netherlands and Belgium, long robust broker markets, are experiencing intense deal activity, and the Nordics continue to attract global investors due to their stable economies and specialized industries.
Regional Contrasts At-a-Glance
Here’s a breakdown of the high-level differences and high-profile developments that distinguish these European regions:
- UK & Ireland: Highly consolidated, international, and dominated by PE-backed platforms. The UK is seen as the reference point for consolidation trends across Europe.
- France: More closed historically, but Diot-Siaci and others are building scale, while foreign players start to test the market.
- Germany: Recently transformed into one of Europe’s most active markets for consolidation. GGW leads with an aggressive acquisition strategy.
- Italy: Bancassurance still dominates, yet foreign buyers are becoming increasingly active in acquisitions.
- Spain: Strong premium growth has attracted UK consolidators and Nordic investors.
- Netherlands & Belgium: Traditionally robust broker markets now experiencing heightened M&A activity.
- Nordics: Stable economies and industry specialization make the region attractive to global investors, with Söderberg & Partners playing a leading role.
The shape of things to come
What unites all these markets is a future in which local fragmentation is steadily giving way to pan-European and global structures. The top 20 brokers in Europe already generate more than €18 billion in revenue, and the largest players – Marsh, Aon, Willis Towers Watson, and Arthur J. Gallagher – continue to dominate. But beneath them, up-and-comers are also reshaping the map with aggressive cross-border rollups and diversified strategies.
The result is a continent in flux, where the old order of local heroes is giving way to an interconnected web of global players – but where the only certainty is that true uniformity will continue to remain elusive for quite some time.
