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, 2022-2031
Global Insurance Brokerage Market Analysis
The Global Insurance Brokerage Market Size was $2,95,945.5 million in 2021 and is predicted to grow with a CAGR of 7.0%, by generating a revenue of $5,70,765.4 million by 2031.
Global Insurance Brokerage Market Synopsis
In order to offer assistance online and boost sales and profits, insurance agents and brokers are investing in digital technologies. Digitalization is the process of turning information into digital representations. This includes offering knowledge and skills in digital formats to agents and brokers through insurance websites, digital distribution methods, and online interactions. These online tools and other mobile programs are made to streamline business operations and cut costs. Technology integration into current services is thought to accelerate market expansion. These factors are anticipated to drive the market growth.
The availability of different platforms for purchasing insurance products as well as customers' direct purchase of insurance plans may restrict market growth. For instance, technologies like location analytics and cloud computing provide information about its clients. Due to the considerable data and knowledge that these technologies give insurance brokerage firms about their consumers, they are able to offer timely, pertinent coverage based on their needs. It could be challenging for salesmen, insurance agents, or brokers to promote their product to customers if they are unaware of current technological trends. The above-mentioned factors are anticipated to hamper the market growth over the forecast period.
People can now access a wide range of services due to initiatives being launched by several governmental entities in the insurance plans sector. Governments also educate prospective clients about many options, risk coverages, and assets that can be secured by an insurance plan. In addition, the government is implementing a number of programs such as Universal Health Insurance Scheme that was initiated by the government of India to help the insurance business serve people from all walks of life with insurance plans. Such government initiatives are anticipated to present lucrative chances for the insurance brokerage market growth in the upcoming years.
Insurance Brokerage 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 & 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.
COVID-19 Impact on Global Insurance Brokerage Market
The expansion of the insurance brokerage sector has been negatively impacted by the COVID-19 pandemic. In order to stop the virus from spreading, governments in majority of countries had implemented lockdowns and closed down companies, public institutions, and private organizations worldwide. The consumer demand for insurance had also gradually decreased as a result of the closure of numerous insurance brokerage firms throughout developing countries. Additionally, the shareholders of publicly traded insurance brokerage companies withdrawing their contributions from the company to raise money to meet their daily and conventional needs impacted the market considerably. In addition, shareholders of publicly traded insurance brokerage firms withdrew their investments to raise money to fulfill their regular and everyday needs.
Growing Awareness of the Need of Insurance Policies is Driving the Market Growth
There has been a surge in demand for insurance products such as life insurance, auto insurance, house insurance, and health insurance, among others, in the insurance brokerage market growth. This rise in demand is mostly due to greater consumer knowledge of insurance policies, as well as education on the necessity of insurance policies and the numerous benefits offered to policy holders. Due to the result of the increased demand for insurance policies, the market has grown, as policyholders want the assistance of a broker when obtaining a policy that is appropriate for their needs and preferences. The worldwide insurance brokerage industry is growing due to the integration of IT & analytic solutions and the provision of professional solutions and services. Furthermore, the market's expansion is hampered by customers' direct purchases of insurance plans and the widespread availability of alternative platforms for obtaining insurance policies.
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Direct Purchases of Insurance by Clients to Limit Market Growth
Customers' direct purchases of insurance policies and the availability of several platforms to obtain insurance products might restrict market expansion. These technologies provide extensive data and insights about clients to insurance brokerage firms and enable them to provide timely pertinent coverage based on individual needs. Lack of knowledge about these ongoing technological trends for sales persons, insurance agents or brokers might make it difficult for them to market their product to customers.
Advancements in Digital Technology May Increase the Opportunities
Insurance brokers and agents are investing in digital technologies in order to provide services online and raise sales and profitability. This includes providing agents and brokers with digital tools and resources via insurance portals, exchange websites, and other digital distribution methods. These web-based portals and other digital channels are designed to increase a company’s processing efficiency while lowering expenses. For example, according to a survey on insurance digital transformation, 39%of agents provide web-based portals for customers to request policy changes, obtain insurance ID cards, check policy information and report claims, payments, and obtain insurance certificates, and 78%are increasingly using social media to acquire new customers on Facebook and 68%through LinkedIn. These technological advances might increase the opportunities for insurance brokerage market forecast period.
To know more about global insurance brokerage market opportunities, get in touch with our analysts here.
Global Insurance Brokerage Market, by Insurance Type
Based on insurance type, the market has been divided into life insurance and property & casualty insurance. Among these, the property and casualty insurance sub-segment accounted for the highest market share in 2021 and the segment is estimated to continue its dominance in terms of revenue during the forecast period.
Global Insurance Brokerage Market Share, by Insurance Type, 2021
Source: Research Dive Analysis
The property & casualty insurance sub-segment accounted for a dominant market share in 2021 and the segment is projected to continue its dominance over the forecast period. It provides financial compensation to a property's owner or tenant and its contents in the event of damage or theft, as well as to a third party other than the owner or renter in the event that the person is hurt on the property. A homeowner or renters policy often provides coverage for personal property. 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.
Life insurance subsegment is anticipated to grow at the highest CAGR during the forecast period. Age is the main variable affecting a policyholder's life insurance premiums. A young individual has a better probability of holding the life insurance coverage for a long time, according to the insurer. Also, he or she has a lower risk of passing away too soon from an age-related illness.
Global Insurance Brokerage Market, by Brokerage Type
Based on brokerage type, the market has been divided into retail brokerage and wholesales brokerage. Among these, the retail brokerage sub-segment accounted for the highest revenue share in 2021.
Global Insurance Brokerage Market Size, by Brokerage type, 2021
Source: Research Dive Analysis
The retail brokerage sub-segment accounted for a dominant market share in 2021. Retail brokers and agents are investing in digital technologies to offer services online and thereby increase sales and boost margins. Insurance brokers and agents can be contracted with single or multiple insurance companies as they try to meet different client needs with available insurance products. This market excludes the direct selling of insurance products by insurance companies. The value of the market is based on the fees or commissions paid to brokers by the insured, both commercial and personal. Implementation of technologies in existing products and service lines are increasing the revenue of retail brokerage.
Global Insurance Brokerage Market, Regional Insights
The insurance brokerage market was investigated across North America, Europe, Asia-Pacific, and LAMEA.
Global Insurance Brokerage Market Size & Forecast, by Region, 2021-2031 (USD Million)
Source: Research Dive Analysis
The Market for Insurance Brokerage in North America was the Most Dominant
North America held the highest market share in 2021. Its dominance is largely attributable to the increased awareness of the advantages of insurance coverage and government measures to cover all people under insurance coverage. In addition, North America, particularly the United States, has the region's most developed public healthcare system, making it the largest insurance brokerage market share for health insurance in the region.
Competitive Scenario in the Global Insurance Brokerage Market
Investment and agreement are common strategies followed by major market players. For instance, in October 2021, Gallagher, a leading multinational insurance brokerage company, announced the acquisition Edelweiss Insurance Brokers, another insurance brokerage company. This acquisition is expected to help the acquiring company.
Source: Research Dive Analysis
Some of the leading insurance brokerage market analysis players are Marsh & McLennan, AON PLC, Willis Towers Watson PLC, Arthur J. Gallagher, Hub International, Lockton, Truist Insurance Holdings, Acrisure LLC, Alliant Insurance Services, Inc., and Brown & Brown.
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 size was over $2,95,945.5 million in 2021 and is projected to reach $5,70,765.4 million by 2031.
Q2. Which are the major companies in the insurance brokerage market?
A. Marsh & McLennan, AON PLC and Willis Towers Watson PLC 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 share is anticipated to grow at 5.7% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Marsh & McLennan, AON PLC and Willis Towers Watson PLC are the companies 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
1.5.Market size estimation
2.2.Key objectives of the study
2.5.Overview of the impact of COVID-19 on global Insurance Brokerage market
4.2.Growth impact forces
4.3.Market value chain analysis
4.3.1.List of raw material suppliers
4.3.2.List of manufacturers
4.3.3.List of distributors
4.4.Innovation & sustainability matrices
4.5.Porter’s five forces analysis
4.5.1.Bargaining power of suppliers
4.5.2.Bargaining power of consumers
4.5.3.Threat of substitutes
4.5.4.Threat of new entrants
4.5.5.Competitive rivalry intensity
4.7.Impact of COVID-19 on insurance brokerage market
4.7.1.Pre-covid market scenario
4.7.2.Post-covid market scenario
5.Insurance Brokerage Market Analysis, by Insurance Type
5.2.1.Definition, key trends, growth factors, and opportunities
5.2.2.Market size analysis, by region,2022-2031
5.2.3.Market share analysis, by country,2022-2031
5.3.Property and Casualty Insurance
5.3.1.Definition, key trends, growth factors, and opportunities
5.3.2.Market size analysis, by region,2022-2031
5.3.3.Market share analysis, by country,2022-2031
6.Insurance Brokerage Market Analysis, by Brokerage Type
6.1.1.Definition, key trends, growth factors, and opportunities
6.1.2.Market size analysis, by region,2022-2031
6.1.3.Market share analysis, by country,2022-2031
6.2.1.Definition, key trends, growth factors, and opportunities
6.2.2.Market size analysis, by region,2022-2031
6.2.3.Market share analysis, by country,2022-2031
6.3.Research Dive Exclusive Insights
7.Insurance Brokerage Market, by Region
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
18.104.22.168.Market size analysis, by Insurance Type,2022-2031
22.214.171.124.Market size analysis, by Brokerage Type,2022-2031
7.1.4.Research Dive Exclusive Insights
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
18.104.22.168.Market size analysis, by Insurance Type,2022-2031
22.214.171.124.Market size analysis, by Brokerage Type,2022-2031
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
7.2.5.Italy184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
7.2.6.Rest of Europe
18.104.22.168.Market size analysis, by Insurance Type,2022-2031
22.214.171.124.Market size analysis, by Brokerage Type,2022-2031
7.2.7.Research Dive Exclusive Insights
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
18.104.22.168.Market size analysis, by Insurance Type,2022-2031
22.214.171.124.Market size analysis, by Brokerage Type,2022-2031
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
7.3.6.Rest of Asia Pacific
18.104.22.168.Market size analysis, by Insurance Type,2022-2031
22.214.171.124.Market size analysis, by Brokerage Type,2022-2031
7.3.7.Research Dive Exclusive Insights
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
18.104.22.168.Market size analysis, by Insurance Type,2022-2031
22.214.171.124.Market size analysis, by Brokerage Type,2022-2031
126.96.36.199.Market size analysis, by Insurance Type,2022-2031
188.8.131.52.Market size analysis, by Brokerage Type,2022-2031
7.4.5.Rest of LAMEA
184.108.40.206.Market size analysis, by Insurance Type,2022-2031
220.127.116.11.Market size analysis, by Brokerage Type,2022-2031
7.4.6.Research Dive Exclusive Insights
8.1.Top winning strategies, 2021
8.3.Market share analysis, 2021
9.1.Marsh & McLennan
9.3.Willis Towers Watson PLC
9.4.Arthur J. Gallagher
9.7.Truist Insurance Holdings.
9.9.Alliant Insurance Services, Inc..
9.10.Brown & Brown
10.1.Parent & peer market analysis
10.2.Premium insights from industry experts
Insurance brokerage refers to the business of disseminating information about various types of insurance policies to the customers and meeting their insurance related demands. An insurance broker is an important entity in this business who advises, suggests, and sells insurance policies to the customers while at the same time acting as a mediator between policyholders and insurers. Along with information about insurance policies, insurance brokers also offer technical and expert information regarding the minute details of the insurance policy.
Over the years, there has been a substantial increase in awareness regarding the importance of insurance policies which is expected to be the primary growth driver of the global insurance brokerage market during the forecast period. Along with this, advancements in digital technology for building web-based insurance portals are predicted to boost the insurance brokerage market during the forecast years. Moreover, various government initiatives to expand the insurance network are expected to offer numerous growth opportunities to the market players during the forecast years. However, according to the market analysts, direct purchases of insurance policies by clients may act as a restraint in the full-fledged growth of the insurance brokerage market during the 2022 to 2031 timeframe.
Regionally, the insurance brokerage market in the North America region is expected to be the most dominant during the forecast period. The presence of the most developed public healthcare systems is predicted to be the main contributing factor to the growth of the market in this region.
As per a report by Research Dive, the insurance brokerage market is expected to generate a revenue of $570,765.4 million by 2031, thereby growing at a CAGR of 7.0% during the 2022 to 2031 timeframe. Some of the prominent market players include Marsh & McLennan, Hub International, Acrisure LLC, AON PLC, Lockton, Alliant Insurance Services, Willis Towers Watson PLC, Truist Insurance Holdings, Brown & Brown, and Arthur J. Gallagher.
COVID-19 Impact on the Market:
The COVID-19 pandemic and the subsequent lockdowns have had a significant impact on various businesses and markets worldwide. The insurance brokerage market also witnessed a negative impact due to the pandemic. During the pandemic, several insurance brokerage companies had to shut down due to decrease in demand for new insurance policies. Moreover, shareholders of different insurance companies withdrew their contributions from their insurance policies which further affected the growth rate of the market.
Significant Market Developments:
The key players of the market are adopting various business strategies such as partnerships, mergers & acquisitions, and product launches to gain a leading position in the market, thus helping the insurance brokerage market to flourish. For instance:
- In November 2022, PCF Insurance Services (PCF), a U.S.-based insurance company, announced the acquisition of Voluntary Benefits at Work, a health insurance company. This acquisition is predicted to help PCF Insurance Services to expand their operations globally in the upcoming years.
- In January 2022, Mahindra Insurance Brokers, a leading financial services company, announced that it was partnering with Tata 1mg, a healthcare company. Under this partnership agreement, Mahindra Insurance Brokers will provide healthcare solutions to corporate employees and their immediate families. This partnership is anticipated to cater to the demands of the medical insurance sector in a comprehensive manner.
- In October 2021, Arthur J. Gallagher & Co., the world’s leading insurance company, announced the acquisition of Edelweiss Insurance Brokers Limited, another renowned insurance firm. This acquisition is predicted to help the acquiring company i.e., Arthur J. Gallagher & Co., to further consolidate its lead in the market.