The insurance broker market is undergoing considerable change in the UK with the larger players snapping up their smaller counterparts to fuel their growth and drive their expansion into the regions.

Smaller brokers, meanwhile, are being driven to sell as a result of an increasing number of retail agencies cutting back on the number of wholesalers they call upon, leading them to fear being squeezed out of the market if they don’t become part of a larger broking organisation.

These larger organisations generally offer higher levels of efficiency compared to independent brokers, and with rapidly emerging technological developments only serving to increase these efficiency benefits, the drive towards consolidation only looks set to continue.

What this means for commercial property owners is that there are fewer brokers to choose from when looking to place their business with an insurer, as well as less competition.

“Property owners need to be aware that the pool of brokers they can choose from to find them a policy is getting smaller,” says M2 Recovery founder Neil Holloway. “And anyone using a managing agent to place their business should do their research as to what broker is being used on their behalf.

“Any suggestion that secret commissions are being paid to secure the business should be explored fully. M2 Recovery offers a free checking service that can investigate if secret commissions have been paid as part of a commercial property insurance policy, and work to recover up to six years’ worth of undisclosed commission payments.”