https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ABrokerageDefinition:Brokerage - Revision history2026-06-13T22:08:18ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Brokerage&diff=6714&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T04:42:32Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🏢 '''Brokerage''' refers, in the insurance context, both to the firm that acts as an intermediary between [[Definition:Policyholder | policyholders]] and [[Definition:Insurance carrier | carriers]] and to the [[Definition:Commission | commission]] or fee that such a firm earns for placing and servicing [[Definition:Insurance policy | insurance business]]. A brokerage operates as the client's advocate — analyzing [[Definition:Risk | risk]] exposures, designing coverage programs, negotiating terms with [[Definition:Underwriter | underwriters]], and assisting with [[Definition:Claim | claims]] — distinguishing it from an [[Definition:Insurance agent | agent]], who traditionally represents the insurer. The world's largest brokerages, such as Marsh, Aon, and WTW, wield substantial market influence, managing placement flows that shape [[Definition:Capacity | capacity]] allocation across global [[Definition:Insurance market | insurance markets]].<br />
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⚙️ A brokerage earns revenue primarily through [[Definition:Commission | commissions]] embedded in the [[Definition:Premium | premium]] charged by insurers, though fee-based compensation models are gaining ground, particularly for complex [[Definition:Commercial insurance | commercial]] and [[Definition:Specialty insurance | specialty]] lines. When a client engages a brokerage, the broker prepares a detailed [[Definition:Submission | submission]] that outlines the risk, solicits quotes from multiple carriers, and presents the client with options. Once the client selects a program, the broker [[Definition:Binding | binds]] coverage, manages policy documentation, and often handles mid-term [[Definition:Endorsement | endorsements]] and [[Definition:Renewal | renewals]]. In [[Definition:Reinsurance | reinsurance]], brokerages like Guy Carpenter and Gallagher Re serve a parallel function, placing [[Definition:Cession | cessions]] on behalf of [[Definition:Ceding company | ceding companies]] into the [[Definition:Reinsurance market | reinsurance market]].<br />
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📊 The brokerage sector's consolidation over the past two decades — driven by [[Definition:Mergers and acquisitions (M&A) | mergers and acquisitions]] and [[Definition:Private equity | private-equity]]-backed roll-ups — has reshaped power dynamics across the insurance value chain. Large brokerages command significant negotiating leverage with carriers, influence product design, and increasingly invest in [[Definition:Insurtech | technology platforms]] that streamline placement and data analytics. For insurers and [[Definition:Managing general agent (MGA) | MGAs]] alike, understanding brokerage economics is essential: the size of the brokerage commission directly affects the [[Definition:Expense ratio | expense ratio]] of the business written, and shifts in how brokerages steer distribution can redirect meaningful volumes of [[Definition:Premium | premium]] almost overnight.<br />
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'''Related concepts'''<br />
{{Div col|colwidth=20em}}<br />
* [[Definition:Insurance broker]]<br />
* [[Definition:Commission]]<br />
* [[Definition:Insurance agent]]<br />
* [[Definition:Reinsurance broker]]<br />
* [[Definition:Placement]]<br />
* [[Definition:Distribution channel]]<br />
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