The trend for insurers to buy UK brokers is an increasing source of concern to the broking fraternity, according to the latest member survey by the Institute of Insurance Brokers (IIB).

More than two-thirds of respondents to the IIB survey believe the practice will lead to unfair competition and preferential ratings for insurer-owned brokerages.

Only yesterday, Axa purchased independent commercial broker The Davis Group, its fourth broker acquisition in the past year.

IIB Director-General Andrew Paddick concedes there is no hard evidence of preferential rating, but he is closely monitoring the situation.

“Should preferential rating become a problem, then we will have to consider an appropriate commercial response.”

He also questions insurers’ motives in buying in to the sector.

“I do not believe some insurer claims that they are buying brokerages solely as an investment,” he said. “I think it is far more tactical to secure influence over the movement/retention of large blocks of business.”

Over the past year, overseas insurers IAG, French insurer Groupama and compatriot Axa have bought a number of major brokerages in the UK.

In the local market, Australian insurers have resisted the temptation so far, but QBE and Allianz have secured “strategic stakes” in major cluster group Austbrokers.

In the UK, insurers appear to have replaced “super-brokers” as the main perceived threat to independent brokers. A survey last year by Lloyd’s and the British Insurance Brokers Association found consolidation and shifting distribution trends were the biggest worries for brokers.

The IIB report also highlighted the issue of succession planning, with more than a fifth of respondents looking to sell or merge in the next three years.