The insurance industry is rapidly changing, continue reading to discover the state of the insurance industry today. John Wepler, Chairman & CEO at MarshBerry recently sat down with Business Insurance magazine to talk about the state of the insurance industry – post-pandemic and amidst the current economic turmoil. John describes how the pandemic has revealed the urgency for many brokerages to evolve and adapt to this new environment of uncertainty. To be competitive, firms are shifting their focus to become specialists with a focus on vertical integration. They are also turning towards Managing General Agents (MGAs) to help them become innovative in offering unique solutions to their customers.
Technology and data
The adoption of advanced technology has become table stakes for brokerages (versus a “nice-to-have” mindset) in order to maintain personalized relationships. But while Zoom and other collaborative technology tools helped bridge the gap in face-to-face interactions during the pandemic – the technology of data analytics and predictive modeling have also been ramped up.
“Customer demands have increased,” says John. “Insureds want more than just a broker. They want a trusted advisor who can offer advanced insights and unique solutions. Agencies need to prescribe risk mitigation solutions to produce better outcomes, rather than simply managing risks or reacting to events.”
Valuations and M&A activity
Despite the current inflationary state of the economy and increasing interest rates, John believes agency and brokerage valuations will remain strong, and consolidation within the sector will continue to be robust. In the inflationary environment, brokerages’ results are benefiting from both exposure base and insurance rate increases. The Insurance industry has historically shown resilience in down markets. However, brokerages still need to focus on organic growth strategies that can help shield them from economic volatility. Brokerages can’t continue to rely on business-as-usual tactics to compete in this evolving industry.
“MarshBerry continues to help specialty firms raise capital to help them scale more rapidly and give them a more defined competitive advantage,” says John.
Business Insurance’s Top 100 Brokers of U.S. Business
Read more of John Wepler’s comments in Business Insurance’s Special Report: Broker Profiles & Rankings (found on page 24).
Also, see Business Insurance’s 2022 top 100 largest brokers ranked by revenue generated by U.S. based clients.
If you have questions about Today’s ViewPoint or want to learn how to differentiate your firm in today’s marketplace, please email or call John Wepler, Chairman & CEO at 440.392.6572.
