Insurance Brokerage Market Report
Insurance Brokerage Market by Insurance Type (Life Insurance and Property & Casualty Insurance), Brokerage Type (Retail Brokerage and Wholesale Brokerage), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
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Impact of covid-19 on Insurance Brokerage Market
Global Insurance Brokerage Market Analysis
The global insurance brokerage market was valued at $317.9 billion in 2020 and is projected to reach $515.3 billion by 2028 registering a CAGR of 5.4%.
The rise in demand for insurance policies and several initiatives undertaken by the government in the area of insurance policies are driving the market growth.
However, if the insurance agent or insurance broker is not familiar about the technologies used (for instance, cloud computing and artificial intelligence), it might be difficult for him to assist the client. This might restrain the market growth during the forecast period.
According to the regional analysis of the market, the Asia-Pacific insurance brokerage market is anticipated to grow at a CAGR of 6.5% by generating a revenue of $52.4 billion during the review period.
Insurance Brokerage Market Overview
An insurance broker is a person who works with numerous insurers to sell, request, or negotiate insurance products on behalf of their clients. An insurance broker serves as a link between policyholders and insurers, and thus plays a crucial role in the development of the company’s economy. Insurance brokers provide their clients with technical and expert insurance advice. Health insurance, property and casualty insurance, and medical insurance are among the insurance products offered by brokers. Insurance brokers work closely with their clients to ensure that their coverage needs are met.
Impact Analysis of COVID-19 on the Global Insurance Brokerage Market
The COVID-19 outbreak has had a negative impact on the growth of the insurance brokerage market. This is due to governments in most nations imposing lockdowns and shutting down businesses, public and private organizations around the world to prevent the virus from spreading. Furthermore, due to the closure of various insurance brokerage firms across developing nations, and shareholders of publicly held insurance brokerage companies withdrawing their contributions from the company to raise funds to meet their daily and conventional needs, the consumer demand for insurance has decreased gradually. Moreover, the shareholders of public trading insurance brokerage companies are withdrawing their contributions in order to raise funds to meet their daily and routine demands. Furthermore, pioneering insurance companies are showing increased interest in insurance brokers in order to improve their business processes and provide immediate insurance services all over the world.
Increasing Technology in the Area of Insurance Brokerage is Anticipated to Drive the Market Growth
Insurance agents and brokers are investing in digital technologies in order to provide assistance online and increasing sales and margins. The process of converting information into digital formats is known as digitalization. This includes providing agents and brokers with knowledge and techniques in digital formats via insurance websites, digital distribution channels, and website interactions. These internet platforms and other mobile applications are intended to improve business processing efficiency and reduce costs. This implementation of technology into the existing services, is said to boost the market growth.
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Lack of Knowledge in Insurance Brokers About Technology Used May Restrict the Market Growth
Customers' direct purchases of insurance plans, as well as the availability of multiple platforms for obtaining insurance products, may limit market expansion. For instance, technologies like cloud computing and location analytics provide data about their customers. These technologies provide insurance brokerage firms with extensive data and insights about their clients, allowing them to provide timely, relevant coverage based on individual needs. Lack of knowledge about current technological trends may make it difficult for salespeople, insurance agents, or brokers to market their product to customers.
Government Initiatives in the Field of Insurance Policies is Expected to Increase the Opportunities in the Market
Several government bodies are launching major initiatives in the field of insurance policies, allowing people to access a wide variety of services. Governments are also informing potential customers about the multiple opportunities and risk coverages and assets that can be protected through an insurance scheme. Besides that, the government is putting in place a number of initiatives to support the insurance industry in providing insurance policies to individuals from different walks of life. As a result, these government developments are expected to provide profitable opportunities for the industry in the coming years.
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Insurance Brokerage Market
Based on insurance type, the market has been divided into life insurance and property & casualty insurance sub-segments of which the property & casualty insurance sub-segment is projected to generate the maximum revenue and life insurance sub-segment is predicted to show the fastest growth.
Source: Research Dive Analysis
The property & casualty insurance sub-segment is predicted to have a dominating market share in the global market and register a revenue of $279.3 billion during the forecast period. The increasing occurrence of major natural disasters necessitates accurate risk assessment. With the changing risk landscape, changing customer expectations, and the entry of new players, the property and casualty insurance landscape is rapidly evolving.
The life insurance sub-segment is anticipated to have the fastest market growth, and it is predicted that the market shall generate a revenue of $236.0 billion by 2028, growing from $125.8 million in 2020. The primary factor influencing a policyholder's life insurance premiums is his or her age. According to the insurer, a young person has a better chance of keeping the life insurance policy for many years. He or she is also less likely to die prematurely from an age-related disease.
Insurance Brokerage Market
By Brokerage Type
On the basis of brokerage type, the market has been sub-segmented into Retail Brokerage and wholesale brokerage. Among the mentioned sub-segments, the Retail Brokerage sub-segment is predicted to show the fastest growth and garner a dominant market share.
Source: Research Dive Analysis
The retail brokerage sub-segment of the global insurance brokerage market is projected to have the fastest growth and surpass $367.5 billion by 2028, with an increase from $215.4 billion in 2020. Due to the penetration of internet, and 5G & 4G services, online retailing brokerage has become crucial. Mobile-first sites, dedicated apps, emerging payment methods, and other tools are making retail brokerage on smartphones much easier. These technological factors are driving the sub-segments’ growth.
Insurance Brokerage Market
The insurance brokerage market was investigated across North America, Europe, Asia-Pacific, and LAMEA.
Source: Research Dive Analysis
The Market for Insurance Brokerage in North America to be the Most Dominant
The North America insurance brokerage market accounted $146.8 billion in 2020 and is projected to register a revenue of $227.8 billion by 2028. Because of increased awareness on the benefits of insurance coverage and government initiatives to cover all residents under insurance coverage, North America dominated the global insurance market with the highest market share. Furthermore, North America, particularly the United States, has a highly organized public healthcare infrastructure, making it the largest market in the North American health insurance market.
The Market for Insurance Brokerage in Asia-Pacific to be the Fastest Growing
The share of Asia-Pacific insurance brokerage market is anticipated to grow at a CAGR of 6.5% by registering a revenue of $52.4 billion by 2028. The Asia-Pacific region plays a vital role in the insurance industry's future. It is responsible for nearly one-third of the world's population, and it comprises of several of the quickest growing economies, and a number of countries with rapidly growing middle-class populations. Asia-Pacific is anticipated to witness the fastest growing market during the study period due to rapidly expanding insurance providers in the region, particularly in India and China, as well as growing awareness of insurance coverage in the region.
Competitive Scenario in the Global Insurance Brokerage Market
Product launches and mergers & acquisitions are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading insurance brokerage market players are Acrisure LLC, Aon plc, Brown & Brown Inc, Gallagher, HUB International Limited, Lockton companies, Marsh & McLennan Companies Inc., Truist Insurance Holdings, USI Insurance Services L.L.C, and Willis Towers Watson.
Porter’s Five Forces Analysis for the Global Insurance Brokerage Market:
- Bargaining Power of Suppliers: The suppliers in the insurance brokerage market are high in number. If we assume that suppliers have few customers (e.g., a small/medium-sized firm), they are likely to give in to the demands of buyers. On the other hand, if we assume suppliers have several customers, they have more power over buyers. Since there are a significant number of suppliers in the industry, switching costs are low for buyers.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: Buyers have huge bargaining power; they demand best services at low prices. This increases the pressure on the insurance brokers to offer the best service in a cost-effective way. Thus, buyers can freely choose the convenient service that best fits their preference.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Due to high entry barriers and brand loyalty for customers and high government regulations it is difficult for a new entrant to enter the market.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: There are many alternative products available in the market. The cost of switching is high.
Thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Acrisure LLC, Aon plc, and Brown & Brown Inc. Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Insurance Type
Segmentation by Brokerage Type
Key Companies Profiled
Q1. What is the size of the global insurance brokerage market?
A. The size of the global insurance brokerage market was over $317.9 billion in 2020 and is projected to reach $515.3 billion by 2028.
Q2. Which are the major companies in the insurance brokerage market?
A. Acrisure LLC, Aon plc, and Brown & Brown Inc are some of the key players in the global insurance brokerage market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific insurance brokerage market?
A. Asia Pacific insurance brokerage market is anticipated to grow at 6.5% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Technological development and strategic partnerships are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Gallagher and Hub international limited are investing more on R&D activities for developing new products and technologies.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
2.2.By insurance type trends
2.3.By brokerage type trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.8.1.by insurance type
3.8.2.by brokerage type
3.9.Market value chain analysis
3.9.1.Stress point analysis
3.9.2.Raw material analysis
3.9.4.Distribution channel analysis
188.8.131.52.Raw material suppliers
4.Insurance Brokerage Market, by insurance type
4.1.1.Market size and forecast, by region, 2020-2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.Property & casualty insurance
4.2.1.Market size and forecast, by region, 2020-2028
4.2.2.Comparative market share analysis, 2020 & 2028
5.Insurance Brokerage Market, by brokerage type
5.1.1.Market size and forecast, by region, 2020-2028
5.1.2.Comparative market share analysis, 2020 & 2028
5.2.1.Market size and forecast, by region, 2020-2028
5.2.2.Comparative market share analysis, 2020 & 2028
6.Insurance Brokerage Market, by Region
6.1.1.Market size and forecast, by insurance type, 2020-2028
6.1.2.Market size and forecast, by brokerage type, 2020-2028
6.1.3.Market size and forecast, by country, 2020-2028
6.1.4.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
6.2.1.Market size and forecast, by insurance type, 2020-2028
6.2.2.Market size and forecast, by brokerage type, 2020-2028
6.2.3.Market size and forecast, by country, 2020-2028
6.2.4.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
6.2.9.Rest of Europe
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
6.3.1.Market size and forecast, by insurance type, 2020-2028
6.3.2.Market size and forecast, by brokerage type, 2020-2028
6.3.3.Market size and forecast, by country, 2020-2028
6.3.4.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
6.3.9.Rest of Asia Pacific
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
6.4.1.Market size and forecast, by insurance type, 2020-2028
6.4.2.Market size and forecast, by brokerage type, 2020-2028
6.4.3.Market size and forecast, by country, 2020-2028
6.4.4.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by insurance type, 2020-2028
220.127.116.11.Market size and forecast, by brokerage type, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by insurance type, 2020-2028
126.96.36.199.Market size and forecast, by brokerage type, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
7.1.4.Recent strategic moves & developments
7.2.4.Recent strategic moves & developments
7.3.Brown & Brown Inc
7.3.4.Recent strategic moves & developments
7.4.4.Recent strategic moves & developments
7.5.HUB International Limited
7.5.4.Recent strategic moves & developments
7.6.4.Recent strategic moves & developments
7.7.Marsh & McLennan Companies Inc
7.7.4.Recent strategic moves & developments
7.8.Truist Insurance Holdings
7.8.4.Recent strategic moves & developments
7.9.USI Insurance Services L.L.C
7.9.4.Recent strategic moves & developments
7.10.Willis Towers Watson
7.10.4.Recent strategic moves & developments
An insurance broker works with several insurers to request, sell, or negotiate insurance policies or services on behalf of their customers. Insurance brokers act as a bridge between insurance companies and customers. Every insurance broker is a complete package of the following aspects:
- The specialty of insurance brokers is risk and insurance management.
- Brokers act on the client’s behalf and offer advice in the client’s interests.
- Insurance brokers help consumers identify a business or individual threats/risks and advice on how to handle them.
- Technical advice is also given by the brokers to make claims if necessary.
- Insurance brokers are aware of coverage, exclusions, and terms & conditions of policies; therefore they help in choosing the appropriate policy.
- Brokers aid in arranging & placing cover with the insurer.
Forecast Analysis of the Market
The global insurance brokerage market is estimated to enhance in the forthcoming years due to the digitization of insurance broker services at a large scale. For instance, in June 2021, Wefox, a digital insurance startup, declared that it had raised USD650 million from investors in an ‘insurtech’ company and this is a record-breaking achievement. Wefox’s tactic to provide digital tools assures automated, streamlined, and labor-intensive processes for the agents. Apart from this, as per a report prepared by insurtech, digital channels are gaining popularity due to risks and the onset of natural disasters coupled with social distancing & lockdown norms during the COVID-19 pandemic. Also, the report mentioned that 87% of insurers said that they will invest in digital platforms and 32% said that digital channels are efficient in sales as they lack customized advice capabilities.
Furthermore, brokers and insurance agents are heavily investing in digital channels to offer online assistance, margins, and sales. Also, the agents and brokers are provided with adequate knowledge of digital platforms through website interactions, digital distribution channels, and insurance websites. The incorporation of technology in insurance companies and brokerages is predicted to drive the global market in the coming years significantly. Apart from this, the global insurance brokerage market is speculated to augment at a CAGR of 5.4% during the 2021-2028 timeframe. Furthermore, the North American market is projected to hold a dominant share as governments cover insurance for all residents living in the region.
Recent Developments in the Market
The leading players of the global insurance brokerage are as follows:
- USI Insurance Services L.L.CAon plc
- Acrisure LLC
- Brown & Brown Inc.
- HUB International Limited
- Lockton companies
- Truist Insurance Holdings
- Marsh & McLennan Companies Inc.
- Willis Towers Watson
These prominent participants of the market are predicted to enhance rapidly due to various strategies applied by them such as novel product launches, mergers of promising companies, collaborations, and research activities. For instance, in June 2021, Ratehub Inc., a mortgage & finance company, declared the launch of P&C, a property & casualty insurance brokerage called – RH Insurance. The company aims to launch the biggest financial product comparison online platform in Canada. Furthermore, in September 2020, Mahindra Finance, a financial service company, was set to enter the business of digital insurance broking services by launching a service portal called PayBima. Moreover, in June 2020, BSE EBIX Insurance Broking, a collaboration of EBIX Fincorp Exchange and BSE, introduced the beta launch health insurance products. The company has partnered with Religare Health Insurance and is offering health insurance to participants.
Covid-19 Impact on the Market
The global insurance brokerage market is negatively affected during the Covid-19 pandemic due to the shutdown of insurance brokerage companies across the developing nations. Also, various brokerage companies are withdrawing their funds from the companies to meet their daily needs during the pandemic. Moreover, the shutdown of businesses, organizations, offices, and much more during lockdown to curb the spread of coronavirus infection is anticipated to decline the market growth. However, digitization of brokerage services is the key to propel market growth during the pandemic.
Future Scope of the Market
Sometimes people prefer to purchase insurances directly from the companies and do not consult brokers. This factor is likely to hamper market growth in the coming years. However, government initiatives to promote and give insurances to all the residents of the nation are estimated to create opportunities for the market in the forthcoming years. Moreover, the digitization of brokerage services is another factor that is expected to propel the market growth in the future.
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