Insurance Brokers & Services covers insurance brokers, agencies and related services. MoatScope covers 30 companies here. Three have a wide moat, nine a narrow moat and 18 none.
How the industry makes money
Brokers place clients' insurance with carriers and earn commissions and fees without taking underwriting risk. Revenue grows with insurance prices and client growth, and needs little capital.
Where the moats are
Expertise and relationships, counted as intangible assets, appear in all 12 moat-rated companies, and switching costs in 11: large clients rarely move complex programs built over years.
- Marsh & McLennan, Aon and Gallagher: global brokers whose scale, data and specialist expertise large clients rely on.
The narrow-moat group includes Willis Towers Watson, Brown & Brown, Erie Indemnity and Ryan Specialty. Companies without a moat include Waterdrop and Huize. Erie Indemnity, rated narrow, scores 67 on MoatScope's quality scale.
What wears moats down
When insurance prices soften, commission growth slows. Acquisitions drive much of the industry's growth and can be overpaid for, and digital distribution competes for smaller clients.
What to watch
- Insurance pricing trends.
- Organic revenue growth.
- Acquisition activity and prices.
Moat ratings and quality scores on this page update as companies report. Price versus fair value for every company in the industry is in the screener.