Insurance Brokers
Unlike carriers who hold capital reserves, these firms act as intermediaries who advise clients on risk management and negotiate with multiple insurers to procure the best coverage.
Why it exists
Brokers exist to match insurance buyers with carriers while structuring optimal coverage.
Why it’s necessary
Insurance products are complex, opaque, and fragmented. Brokers reduce transaction friction and information asymmetry.
Key components
Risk advisory teams
Carrier relationships
Policy structuring & renewal management
Claims advocacy
How to evaluate businesses
Commission revenue stability, retention rates, organic growth, and acquisition discipline define long-term value. This is a fragmented, roll-up-friendly industry.
How the industry could be improved
Digitized policy management, real-time market pricing visibility, automated renewals, and AI-powered coverage gap analysis.