In a classic block-transfer scenario, the commonality is driven by the carrier, who is soliciting the business to grow its business in certain lines in certain locations.

Consolidation continues to change the economic landscape in the U.S., requiring brokers to respond in innovative ways to continue to meet client needs for efficiency and flexibility. Consolidation can challenge brokers to find ways to ensure their clients maintain the same experience across all products, while also offering solutions to improve efficiency for employers who need to do more with less or product solutions for employers who may be forced to rethink their offerings.

Brokers are seeing industry consolidation in three principal ways:

1. Broker consolidation – Firms are merging and increasing in size, taking advantage of cost efficiencies and economies of scale.