INSURANCE BROKERS of all sizes agree that times are tough for them and their clients.

The economic recession that began in late 2007 has created big challenges in the brokerage industry, as we report beginning on page 11.

Most firms have had to cut costs, often in the form of staff, as they struggle to achieve modest revenue growth. Mergers and acquisitions, historically a key driver of growth for agents and brokers, have slowed considerably. That is due to tighter financing and declining valuations, which have made owners reluctant to sell.

Employee benefits business, a big growth area for many brokers during the past several years, is uncertain as Congress considers health care reform legislation that could spell massive changes in how benefit programs are funded. That uncertainty is making some brokers less aggressive in growing benefit practices.


Brokers' clients, facing similar head winds, often are buying less coverage so they can cut their insurance bills. This may not be prudent in every case, but it's an economic reality. Businesses everywhere are forced to make do with smaller budgets.

It adds up to a very difficult environment all around. But being in the same boat may help intermediaries and their clients work together to get safely to shore.

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