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Aon Plc has appointed RT Specialty as its sole "preferred" wholesaler for U.S. retail business as it continues to cut the volume of premium it places through third-party intermediaries, The Insurance Insider can reveal.
The move comes almost five years after the broking giant pared back its approved panel to just AmWINS Group Inc. and to RT Specialty -- the wholesale arm of Ryan Specialty Group LLC, the former Aon CEO Pat Ryan's intermediary and underwriting management company.
The development has prompted fevered market speculation over the motives behind Aon's wholesale strategy, particularly in light of the broking giant's efforts to acquire Swett & Crawford Group Inc. last year.
Some sources have speculated that the deepening of RT Specialty's relationship with Aon could ultimately see it absorbed by the broking giant -- an idea that both parties have strongly dismissed.
Sources have suggested that one of Aon's motivations may be AmWins' perceived encroachment into the retail space via its managing general agency arm, which has brought it into competition with the larger firm.
The selection of a sole preferred wholesaler also raises the question of how rival retailers will respond, and could presage a further shake-up of a wholesale sector that has already seen significant consolidation in recent years.
'Effective immediately'
In a letter seen by The Insurance Insider, Feb. 15, Aon Broking CEO Warren Mula told colleagues the preferred use of the Ryan Specialty...