Brokers to see solid organic revenue growth: A.M. Best

Commercial insurance brokers are forecast to achieve organic revenue growth in the mid-single digits or higher this year, bolstered by continued economic growth and property/casualty rate increases, according to a report released Thursday by ratings agency A.M. Best & Co.

Brokers generally produced organic growth in the mid- to upper single digits in 2023 on the “continued favorable property/casualty pricing environment in most commercial and personal lines, further growth in insurable exposures, strong client retention and new business generation,” Best said.

This was after growth reached a high of nearly 11% in the second quarter of 2021, reflecting the economic recovery and related exposure growth, as well as strong cumulative property/casualty rate increases, the report said.

The strong organic revenue growth combined with “good expense controls” should help brokers maintain “solid” margins this year, Best added.

Those brokers with reinsurance operations should benefit further from strong reinsurance rates and sufficient capacity, the report said.

“The January 2024 reinsurance renewals exhibited fairly balanced supply and demand dynamics with moderate price increases across most lines of business,” the Best report said.