Outlook: Sedgwick falls in the end game

BRITISH INSURANCE broking may not make us wave our union jacks very much, but this was one those industries which the UK could boast was both global and made in the UK. Now the last two independent players of size in the City are following our merchant banks into foreign ownership.

The way things are going, it can only be a matter of time before the clearing banks follow suit. Sedgwick and Willis Corroon, both UK-listed companies, were third and fourth in the global market. You might have thought that would be enough to sustain them as independents, but oh no. If other industries are consolidating, insurance brokers must too.

There's quite a history to this end game. As the insurance market has sagged over the last few years, Sedgwick's chairman, Sax Riley, has been seeking a tie-up with Willis Corroon to create a giant British broker capable of standing on its own. Unfortunately, his opposite number, John Reeve, refused to play ball. He was just determined to run his own show. Eventually he persuaded Kohlberg Kravis Roberts to buy him out.

Why should a client - or for that matter a colleague or a customer - care about a broker's nationality? Ian Smith, the chairman of Marsh & McLennan, says it is out of date to tag a company to the location of its headquarters. Sedgwick's business mostly involves consulting, selling and broking commercial insurance for multinational clients; it is a global business, and ownership doesn't matter.

Fair enough, but that's not what Sedgwick used to say. Up until quite recently it consistently argued that the interests of customers were best served by having more brokers, not fewer. Right now there are only four global brokers of any size left - Marsh & McLennan, its US rival Aon, Sedgwick and the now American-owned Willis Corroon.

Big commercial customers already have precious little chance to reject a broker on grounds of price or service. With three companies rather than four, the position is unlikely to improve.

PROMOTED VIDEO
Arts and Entertainment
American singer, acclaimed actor of stage and screen, political activist and civil rights campaigner Paul Robeson (1898 - 1976), rehearses in relaxed mood at the piano.
filmSinger, actor, activist, athlete: Paul Robeson was a cultural giant. But prejudice and intolerance drove him to a miserable death. Now his story is to be told in film...
News
i100
Arts and Entertainment
Babysitter Katie and Paul have terse words in the park
tvReview: The strength of the writing keeps viewers glued to their seats even when they are confronted with the hard-hitting scenes
Life and Style
Make-up artists prepare contestants for last year’s Miss World, held in Budapest
fashion
Life and Style
life
News
‘The Graduate’, starring Dustin Hoffman and Anne Bancroft, was directed by Nichols in his purple period
people
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...

Ampersand Consulting LLP: Markit EDM (CADIS) Developer

£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...

Carlton Senior Appointments: Director, Private Bank - San Francisco, CA

$175 - $200 per annum, Benefits: full benefits: Carlton Senior Appointments: P...

Carlton Senior Appointments: San Diego, CA – Tier 1 House - Senior MD FA

Not specified: Carlton Senior Appointments: Senior MD Financial Advisor - San ...

Day In a Page

US immigration: President Obama ready to press ahead with long-promised plan to overhaul 'broken system' - but will it get past a Republican-controlled Congress?

Immigration: Obama's final frontier

The President is ready to press ahead with the long-promised plan to overhaul America's 'broken system' - but will it get past a Republican-controlled Congress?
Travelling to work by scooter is faster than walking and less sweaty than cycling, so why aren’t we all doing it?

Scoot commute

Travelling to work by scooter is faster than walking and less sweaty than cycling, so why aren’t we all doing it?
Paul Robeson: The story of how an American icon was driven to death to be told in film

The Paul Robeson story

How an American icon was driven to death to be told in film
10 best satellite navigation systems

Never get lost again: 10 best satellite navigation systems

Keep your vehicle going in the right direction with a clever device
Synagogue attack: Fear unites both sides of Jerusalem as minister warns restoring quiet could take 'months'

Terror unites Jerusalem after synagogue attack

Rising violence and increased police patrols have left residents of all faiths looking over their shoulders
Medecins sans Frontieres: The Ebola crisis has them in the headlines, but their work goes far beyond West Africa

'How do you carry on? You have to...'

The Ebola crisis has Medecins sans Frontieres in the headlines, but their work goes far beyond West Africa
Isis extends its deadly reach with suicide bombing in Kurdish capital

Isis extends its deadly reach with suicide bombing in Kurdish capital

Residents in what was Iraq’s safest city fear an increase in jihadist attacks, reports Patrick Cockburn
Underwater photography competition winners 2014 - in pictures

'Mysterious and inviting' shot of diver wins photography competition

Stunning image of cenote in Mexico takes top prize
Sir John Major: Negative West End portrayals of politicians put people off voting

Sir John Major hits out at theatres

Negative West End portrayals of politicians put people off voting
Kicking Barbie's butt: How the growth of 3D printing enabled me to make an army of custom-made figurines

Kicking Barbie's butt

How the growth of 3D printing enabled toy-designer to make an army of custom-made figurines
Will Smith's children have made waves with a gloriously over-the-top interview, but will their music match their musings?

What are Jaden and Willow on about?

Will Smith's children have made waves with a gloriously over-the-top interview, but will their music match their musings?
Fridge gate: How George Osborne keeping his fridge padlocked shows a frosty side to shared spaces

Cold war

How George Osborne keeping his fridge padlocked shows a frosty side to shared spaces
Stocking fillers: 10 best loo books

Stocking fillers: 10 best loo books

From dogs in cars to online etiquette, while away a few minutes in peace with one of these humorous, original and occasionally educational tomes
Malky Mackay appointed Wigan manager: Three texts keep Scot’s rehabilitation on a knife-edge

Three texts keep Mackay’s rehabilitation on a knife-edge

New Wigan manager said all the right things - but until the FA’s verdict is delivered he is still on probation, says Ian Herbert
Louis van Gaal: the liberal, the enemy and... err, the poet

Louis van Gaal: the liberal, the enemy and... err, the poet

‘O, Louis’ is the plaintive title of a biography about the Dutchman. Ian Herbert looks at what it tells us about the Manchester United manager