EXHIBIT 23.1
 
                        CONSENT OF INDEPENDENT AUDITORS
 
  Our audits included the consolidated financial statement schedule of Arthur
J. Gallagher & Co. listed in Item 14(a). This schedule is the responsibility of
the Company's management. Our responsibility is to express an opinion based on
our audits. In our opinion, the consolidated financial statement schedule
referred to above, when considered in relation to the basic consolidated
financial statements taken as a whole, presents fairly in all material respects
the information set forth therein.
 
  We consent to the incorporation by reference in the Registration Statements
(Form S-8, No. 33-604 and Form S-8, No. 33-14625) pertaining to the Arthur J.
Gallagher & Co. Incentive, United Kingdom Incentive and Nonqualified Stock
Option Plans, in the Registration Statement (Form S-8, No. 33-30762) pertaining
to the Arthur J. Gallagher & Co. 1988 Nonqualified Stock Option Plan, in the
Registration Statements (Form S-8, No. 33-24251 and Form S-8, No. 33-38031)
pertaining to the Arthur J. Gallagher & Co. 1988 Incentive and 1988
Nonqualified Stock Option Plans, in the Registration Statement (Form S-8, No.
33-30816) pertaining to the Arthur J. Gallagher & Co. Non-Employee Directors'
Stock Option Plan, in the Registration Statements (Form S-8, No. 33-64614 and
Form S-8, No. 33-80648) pertaining to the Arthur J. Gallagher & Co. 1988
Incentive, 1988 Nonqualified, and Non-Employee Directors' Stock Option Plans,
and in the related Prospectuses, of our report dated January 18, 1996 with
respect to the consolidated financial statements included herein, and our
report, with respect to which the date is January 18, 1996, included in the
preceding paragraph with respect to the consolidated financial statement
schedule included in this Annual Report on Form 10-K of Arthur J. Gallagher &
Co.
 
                                          /s/ Ernst & Young LLP
                                          -------------------------------------
                                          ERNST & YOUNG LLP
 
Chicago, Illinois
March 1, 1996