The global economic recession will put only a temporary brake on consolidation in the US broker sector, according to a report by New York-based industry analysts Advisen.

Report author John Molka says small brokers are the “engines of growth” in the insurance market, and larger brokers will continue to acquire them to tap into their growth potential.

The report says the largest brokers want greater breadth and depth across more market segments, focusing on both niche opportunities and the vast middle market, which has long been the strength of mid-size brokers.

Many of these brokers have pursued aggressive “roll-up” acquisition strategies to grow market share, the report said.

“The emphasis on middle market business pits the mega-brokers against second and third-tier brokerage firms,” Advisen Executive VP Dave Bradford said.

“Size has advantages, but smaller brokers historically have been quite successful in this sector.”