# UK Insurance Brokerage Market Landscape

## Executive Summary

The UK insurance intermediary channel is one of the largest and most concentrated in the world. Brokers dominate commercial insurance distribution, earn 10–25% of premium as commission, and sit at the centre of a market that generated roughly £19.2bn in intermediary revenue in 2023–24.

## Market Size

- **UK insurance agents & brokers revenue**: approximately £19.2bn in 2023–24, growing at 8.5% CAGR over the previous five years.
- **Average profit margin**: 8.6% (IBISWorld 2024 report).
- **UK general insurance market**: the largest in Europe and fourth largest globally, valued at roughly £85–90bn depending on exchange-rate conversion of USD estimates.
- **Total general insurance premium arranged by brokers**: £105.5bn (BIBA).

## Broker Distribution Power

- Brokers arrange **77% of all UK general insurance**.
- Brokers arrange **94% of all UK commercial insurance**.
- The sector contributes approximately **1% of UK GDP** and employs more than **100,000 people** (BIBA).

## Commission Benchmarks

| Product Type | Typical Commission |
|---------------|-------------------|
| Personal lines (motor / home) | 10–15% of premium |
| SME packaged commercial | 15–25% of premium |
| Complex / niche commercial | Up to 25%+ plus fees |

Brokers may also charge explicit fees where commission is rebated or where advisory work is provided.

## Regulated Population

- Approximately **5,600 firms** hold FCA authorisation for insurance distribution activities.
- Around **33,000 active Appointed Representatives (ARs)** operate across financial services; general insurance AR numbers have been decreasing as FCA principal oversight tightens.

## Strategic Takeaway for SoVael

The channel is large, profitable, and broker-led. There is no shortage of premium — the opportunity is to make distribution more efficient by feeding brokers better-qualified, pre-scored commercial risks than they can acquire through traditional marketing.

## Sources

- BIBA: broker statistics and GDP contribution data.
- IBISWorld: Insurance Agents & Brokers in the UK report (2024).
- FCA Appointed Representatives data (2025–2026).
- ABI general insurance market data.