Declining commission levels take their toll

Is the commission squeeze taking hold industry-wide? From being near-ubiquitous, consolidators are now out in the cold, writes Rachel Gordon.

For consolidators and networks, the air has chilled. Economic conditions are sobering: the harder market has so far failed to materialise and clients are either buying less cover, or worse still, going under.

While consolidators' earnings have been hit - and some have worrying levels of debt - smaller independents typically have lean structures and little debt.

Clare Ryder, managing director at consultants Salient Solutions, commented: "Insurers have been looking at brokers and networks