Which of the following developments in the insurance market is an example of consolidation in the insurance sector?

The growth of broker networks exemplifies consolidation in the insurance sector due to the way these networks bring together independent brokers to operate under a more unified platform. This consolidation allows brokers to leverage shared resources such as technology, marketing, and administrative support, which can lead to greater bargaining power with insurers and increased efficiency in placing insurance policies. By operating collaboratively, they can enhance their market presence and customer service capabilities, reflecting a trend toward consolidation where multiple entities unite for enhanced performance in a competitive market.

Other developments, such as the creation of aggregators, the emergence of direct insurers, and the introduction of contract certainty rules, represent different market strategies or regulatory changes but do not specifically illustrate the concept of consolidation in the same manner as broker networks do. Aggregators typically act as platforms for consumers to compare insurance products rather than consolidating entities. Direct insurers focus on selling directly to consumers, which is more about bypassing intermediaries than consolidating them. Contract certainty rules are regulatory frameworks intended to improve clarity and reliability in insurance contracts, representing a governance change rather than a structural consolidation within the market.