Sector information: insurance consultancy

Insurance advisory firms, also known as insurance consulting firms, provide insurance and risk management services. These firms may have different specializations, depending on the types of insurance and clients they serve. Here are some common types of insurance consulting firms:

• General insurance consulting firm: Provides a wide range of insurance services to individuals and businesses. May include both life and non-life insurance.
• Life Insurance Advisory Firm: Specializing in life insurance, including term life insurance, whole life insurance and investment-linked insurance.
• Non-life insurance consulting firm: Focuses primarily on non-life insurance, including auto insurance, fire insurance, liability insurance and other forms of asset protection.
• Business insurance consulting firm: Provides insurance to businesses and corporations. This includes business property insurance, liability insurance, disability insurance and other business risk insurance.
• Personal insurance consulting firm: Focuses on individual clients and families, offering personal insurance such as auto insurance, life insurance, health insurance and homeowners insurance.
• Retirement Advisory Firm: Specializes in retirement planning and offers advice on retirement insurance and supplemental retirement plans.
• Employee benefits consulting firm: Offers advice to employers on employee benefits, including health insurance, retirement plans and other fringe benefits.
• Reinsurance brokers: Focuses on advising insurers on reinsurance strategies and placing reinsurance to spread risk.
• Specialist insurance consulting firm: Specializes in a specific type of insurance, such as cyber insurance, art insurance, event insurance, or other niche markets.
• International insurance consulting firm: Provides advice to businesses with international operations and helps manage insurance programs across jurisdictions.
• Risk management and consulting firm: Focuses on identifying and managing risk for businesses and individuals. Offers strategic advice on risk management and insurance.
• Digital assurtech advisory firms: Uses technological innovations and digital platforms to offer insurance in an efficient and automated way.

What to look out for when buying an insurance agency

When acquiring an insurance consulting firm, it is important to make careful considerations to ensure a successful and strategic acquisition. Here are some general aspects to consider:

• Client portfolio: Analyze the insurance consulting firm's client portfolio. Understand client diversity, portfolio size and degree of client loyalty.
• Insurance specializations: Research the firm's specializations in terms of insurance types and industries. See if these specializations align with your strategic goals.
• Current insurance contracts: Identify current insurance contracts and policies. Understand the terms of these contracts and any obligations.
• Technology infrastructure: Examine the technology systems and software the insurance advisory firm uses for client management, policy administration and communications. Ensure that these systems are up-to-date and compatible.
• Digital and technological innovations: Investigate whether the firm uses digital and technological innovations within the insurance industry, such as insurtech solutions.
• Insurance partners and insurance companies: Analyze relationships with insurance partners and insurance companies. Strong relationships can be valuable for business continuity.