European expansion for insurance brokers & MGA: how to cross borders without losing your way

Why this topic matters in 2026

Five years ago, European expansion was a topic reserved for major groups. Today, it is a question being asked by mid-sized brokers, wholesale brokers looking for additional growth opportunities, and insurers seeking to structure their international programmes with partners able to follow them beyond the French market.

Several converging signals explain this acceleration:

Partial saturation of the French market. With 67,400 active intermediaries registered at ORIAS at end-2025, the domestic market is crowded. Competition is fierce, margins on standard products (P&C, motor, residential) are under pricing pressure, and consolidation through mergers and acquisitions is mechanically reducing the number of independent players. For those that remain, finding new growth drivers is becoming critical.

The race for critical mass. In 2026, the breakeven threshold for a brokerage firm has structurally increased under the combined effect of compliance requirements (DORA, FIDA), IT costs, and pressure from carrier partners. Groups reaching significant scale naturally look beyond their borders.

The European market opportunity. The European broking market is estimated at USD 260 billion in 2025, with average annual growth of 5.9% through to 2030 (estimate, source: Scale2Sell). Europe accounts for approximately one third of the global market. This is not a marginal market: it is the playing field for those who want to be major players in ten years' time.

The three models of European expansion

There is no single path to internationalising a broking business. In practice, three models coexist, with very different dynamics and risk profiles.

Model 1: External growth through acquisitions

This is the dominant model among major French groups. It involves acquiring established local firms in target countries, which allows the buyer to gain clients, teams, and local market knowledge in one move.

Recent examples are telling. The Adélaïde Group (whose subsidiary Verlingue ranks 7th in the L'Argus de l'assurance general broker rankings) achieved EUR 495 million in revenue in 2025, up 10%. International business now accounts for 24% of that figure. Over the past two years, the group has acquired EBCam in the UK, strengthened its position in Italy, taken a majority stake in Angelus, and completed transactions in Switzerland. A pace of acquisitions that perfectly illustrates the European consolidation dynamic.

Arthur J. Gallagher, the world's third-largest broker, has clearly signalled that France is strategic to its continental expansion. Having had virtually no presence in the French market until recently, it has built a dedicated continental Europe team, with a strategy focused on M&A in key sectors such as cyber, transactional risks, and renewable energy.

What this means for wholesale brokers: groups expanding through acquisition need wholesale platforms capable of supporting them in target markets, managing the complexity of multi-territory programmes, and adapting quickly to new carrier partners. The European expansion of major brokers represents a direct opportunity for well-positioned wholesalers.

Model 2: Building co-broking networks and partnerships

This is often the first step for a mid-sized broker moving into international business. Rather than acquiring, the approach is to partner: mutual referral agreements, sharing of clients on cross-border risks, co-underwriting on international programmes.

This model offers flexibility and low upfront cost. It does however require rigorous partner selection (financial strength, regulatory standing, client advisory culture) and precise contractual arrangements covering each party's responsibilities, particularly around the duty of care.

The Adélaïde Group notably took a stake in Antoma Courtage specifically to develop co-broking activity, alongside its direct acquisitions. The two approaches are not mutually exclusive.

Model 3: FOS on specific niches

For specialist brokers and wholesale brokers (construction risks, cyber, industrial risks, embedded insurance), Freedom of Services (FOS) allows them to serve clients or risks located in other European countries without establishing a local presence. This is particularly relevant where the risk is technical and the broker's value lies in rare sector expertise rather than local proximity.

This approach requires a thorough understanding of the FOS framework, the ability to work in English (or the language of the host country for client-facing activity), and carrier partners willing to write policies covering risks outside France.

European markets to watch closely

Not all markets are alike. Here is a quick read of the main areas of opportunity and complexity.

The UK remains the reference market for complex and industrial risks, with Lloyd's as the essential marketplace. Brexit has created significant regulatory friction: the European passport no longer applies, which means obtaining specific authorisations or operating through locally established entities. Both Gallagher and Adélaïde have set up direct local presences to navigate this constraint.

Germany is the largest continental market, but also one of the most culturally closed to foreign players. German businesses rely on local intermediaries, and market penetration takes time and German-speaking teams.

Italy and Spain are markets in consolidation, with a large number of independent brokers still in operation and a growing appetite for partnerships with more structured players. Several French groups (including Adélaïde in Italy) have made acquisitions there recently.

The Nordic countries (Sweden, Denmark, Finland, Norway) show high levels of digitalisation and strong demand for cyber risks and group insurance programmes. Gallagher already generates 50% of its continental European revenue in this region.

Belgium and the Netherlands are accessible markets for French brokers, with a well-developed B2B broking culture and regulatory environments close to the French framework.

What European expansion means in practice for wholesale and delegated authority brokers

This is the question on readers' minds, and it deserves a direct answer.

For wholesale brokers, the internationalisation of their broker networks creates new demand: insurance programmes that work across multiple jurisdictions, products that can be adapted by country, and the ability to manage underwriting under FOS arrangements. The wholesaler that can support its network in this European dimension becomes a strategic partner rather than simply a capacity provider.

For delegated authority brokers (MGAs), the question is framed differently: insurers expanding internationally need MGAs capable of managing policies covering cross-border risks. DORA compliance, rigorous data management, and the quality of reporting become selection criteria in their own right. An MGA that anticipates these requirements is well positioned with carrier partners looking for reliable European partners.

For insurers, the challenge is selecting distribution partners (wholesale brokers, MGAs) who understand the nuances of the FOS/FoE framework, who have DORA-compliant processes, and who can handle the growing complexity of international programmes. Market consolidation is reducing the number of counterparties, but raising the bar for those that remain.

Mistakes to avoid

Because a good source of insight also covers what not to do:

Underestimating cultural differences. The IDD has harmonised the regulatory framework, not the habits of insurance buyers. In Italy, trust in the intermediary is paramount. In Germany, contractual precision is non-negotiable. Arriving with a product or a sales proposition designed for the French market without adaptation is a classic mistake.

Overlooking local tax obligations. FOS simplifies market access, but it does not neutralise tax obligations. Insurance premium tax applies according to the rules of the country where the risk is located, not the country where the policy is issued. A premium written in France on a risk located in Belgium remains subject to Belgian taxation.

Choosing a local partner without regulatory due diligence. In a consolidating market, firms of variable quality are on sale or seeking partnerships. A partner with a poor record with its local supervisory authority can contaminate your regulatory reputation. Verifying a partner's regulatory status and compliance history is non-negotiable.

Under-resourcing the human side. European expansion cannot be managed from Paris with French-only tools. It requires people who speak the languages, know the local markets, and can manage relationships with foreign counterparties.

In summary

European expansion in the insurance broking sector is no longer just a large group story. It is a reality that is now affecting mid-sized players, and one that is reshaping expectations of wholesale brokers, MGAs, and carrier partners. The European market offers genuine opportunities, within a regulatory framework that has been considerably harmonised through the IDD and the European passport. But this expansion demands rigorous preparation: mastery of the FOS/FoE framework, DORA compliance, target market selection, and the right expansion model.

The groups that move quickly and smartly in this space will build a lasting competitive advantage. Others risk finding themselves in an uncomfortable position as competitors successfully diversify their geographic base.