Some thoughts from Diesta on broker payments;
Payments are the financial infrastructure of the insurance market. The velocity with which money moves through the industry determines levels of working capital, fiduciary income and write-offs.
Drawing on SEC filings, this paper shows that fiduciary receivables across Aon, Marsh, WTW and Gallagher rose from $27.0bn in 2018 to an all-time high of $51.5bn in 2025. The debt ratio of these firms stands at 63.4 per cent which has remained stubbornly consistent over the analysed period.
With payments taking an average of 7.5 months to reach brokers, full settlement across the industry is a matter of years. This delay carries a clear financial cost that is linked to interest rates and operational control.
Over the period analysed, Aon and Marsh incurred a combined $382m in lost fiduciary investment income and $307m in fiduciary write offs. Diesta argues that brokers are best placed to drive change due to their market making position.
Improvements would not only bolster market efficiency but strengthen the economics of broking itself. Against significant advancements in technology and a lasting high-interest rate environment, the cost of waiting is now the cost of losing competitive ground. In insurance payments, standing still is no longer neutral, it is a decision to fall behind.
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