Arthur J. Gallagher & Co.

Brokers monetize expertise and market access. While they cannot directly set insurance prices, they participate in premium growth via commission and fee structures, cross‑sell, and exposure growth.

In hard/firming markets, pricing power manifests through higher premium bases and increased demand for services (risk consulting, analytics, alternative risk). AJG’s 2024 results and Q2 2025 showed strong commissions and fee trends; management cited January 2025 renewals above 5 percent, especially in casualty.

Over the very long term, competitive fee pressure and potential digital disintermediation temper ultimate pricing latitude, but the embedded role in risk placement and claims advocacy remains potent.