The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Primary objectives: Insurance brokers branching out

The fallout from the recent broker investigations has prompted reinsurance broker Benfield to branch out into primary business and create Benfield Corporate Risk. John Lapsley, the new division's chief executive, tells Ben Dyson about his plans and why he thinks there is room for another broker.

This article appears courtesy of Reactions.

Before last Autumn, big was beautiful in the world of insurance broking. A wave of mergers in the late 1990s created three big powerhouses – Marsh, Aon and Willis. Their aim was to provide everything an insurance buyer could possibly want under one roof, which earned them the nickname of supermarket brokers.

But, on October 14 2004, New York Attorney General Eliot Spitzer sued Marsh, the biggest of the three, accusing it of rigging bids to obtain the highest possible contingent commissions.

This brought an abrupt end to the bigger-is-better credo. Many felt bid-rigging was the preserve of the largest brokers, simply because they were the only ones with enough market share, and therefore enough bargaining power, to persuade insurers to submit false bids.

Although this was bad news for the big boys – Marsh in particular – it was music to the ears of smaller brokers and those wanting to establish new primary broking operations. Talk about angry insurance buyers seeking comfort from smaller, more specialised brokers gave them the confidence to set out their stalls.

One of these was UK broker Benfield.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree