The Mega-Mergers Reshaping Aviation Insurance
Within the last couple of years, there have been two blockbuster - what I call mega-mergers - in the aviation insurance brokerage industry. Gallagher acquired Assured Partners, and Acrisure Aerospace was formed via the merger of Falcon Insurance and several other smaller aviation brokerage houses here in the USA. What does this mean to the consumer? Generally speaking, it should be business as usual for most policyholders working with either of those two noted firms - but now with brokerage services under the umbrella of the parent companies (Gallagher and Acrisure). As with any merger, it takes time for each company's systems and personnel to efficiently integrate into one. I would think a policy holder could reasonably expect a hiccup or two along the way as staffing and “insync” communications are rolled out between the two merging companies.
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What It Means for Policyholders
One thing I think that is beneficial to most policyholders will be a broader service base via other lines of insurance outside of aviation insurance. Products such as hangar insurance, workers’ compensation coverages, and errors and omissions insurance are likely to have more market options when a smaller brokerage merges with a larger brokerage, simply due to the larger brokerage house’s bandwidth. I think, as a policyholder, you should be looking to have the same focal broker (person), but with a much stronger team behind them from the servicing side of the business, and potentially market reach.
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The Longer View
Time will obviously tell how mergers and acquisitions play out in the aviation insurance brokerage world, but one thing is for sure: the industry as a whole is definitely consolidating. I think short-term, things will likely be business as usual while the smaller brokerages continue to operate under their own brand and dedicated personnel who service your policy. I think longer-term efficiencies should kick in and processes automated/simplified between the brokerage house and the policyholder. Our industry is definitely in a period of transition with the mergers occurring over the last 12-18 months – it is important now more than ever that you have a good relationship with your aviation insurance broker, as the number of brokerage companies operating in the space consolidates more and more.
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