Insurance Brokerage Market Size is Projected to Generate a Revenue of $5,70,765.4 Million by 2031Download Sample Reports Overview
The Global Insurance Brokerage Market Size is predicted to be valued at $5,70,765.4 million by 2031, surging from $ 2,95,945.5 million in 2021, at a noteworthy CAGR of 7.0%.
Impact Analysis of COVID-19 on the Insurance Brokerage Market
The global insurance brokerage sector witnessed considerable impact during the COVID-19 pandemic. Different insurance brokerage firms in developing nations closed as a result of a decline in consumer demand for insurance, and shareholders of publicly traded insurance brokerage market growth firms were withholding their contributions from the company in order to raise money to meet their regular and daily needs.
Although the market for insurance brokerage has seen tremendous growth in recent years, a little fall was in the industry in 2020 as a result of the COVID-19 pandemic. This is due to the implementation of curfews by government agencies in the majority of countries, as well as the closing of enterprises and private & public companies worldwide to prevent the infection.
Global Insurance Brokerage Market Analysis
The main drivers of the growth of the worldwide insurance brokerage market size are the rising demand for insurance policies, the integration of analytical solutions and IT, and the provision of professional services and solutions. Furthermore, throughout the forecast period, the insurance brokerage market growth is anticipated to benefit from the integration of new technologies into current product and service lines as well as government efforts pertaining to insurance policies.
On the other hand, there has been a rise of several online platforms that connect insurance companies to the clients directly, eliminating the need for middlemen or brokers. These online platforms offer information on insurance policies to clients along with the convenience to buy or upgrade the policies themselves. Such advancements in the insurance brokerage market share are projected to impede the growth during the forecast period.
Numerous government organizations such as Department of Financial Services are running extensive campaigns to market insurance policies and provide clients with a range of coverage choices. Governments have also informed citizens about the many options and risk protections that could be provided by an insurance program through the gathering and distribution of data. Technologies such as IoT, predictive analysis and other technologies give insurance brokerage market demand companies a wealth of information and understanding about their clients, enabling them to offer timely, pertinent coverage based on specific requirements. It could be challenging for salesmen, insurance agents, or brokers to promote their product to customers if they are unaware of current technological trends.
Global Insurance Brokerage Market, Segmentation
The global insurance brokerage market is segmented based on insurance type, brokerage type, and region.
The insurance type segment is further classified into life insurance and property & casualty insurance. Among these, life insurance sub-segment is projected to be the fastest growing segment over the forecast period. Age is the main variable that affects a policyholder's life insurance premiums. According to insurers, a young person is more likely to keep the life insurance policy active for many years. Also, he or she has a lower risk of developing an age-related illness and dying young. The quantity of premiums is also influenced by the gender. The likelihood that women will live an additional five years on average than men is supported by scientific and statistical data. The underwriting process for life insurance policies frequently entails a thorough medical examination of the insured. These factors are anticipated to propel the growth of life insurance subsegment over the forecast period.
The retail brokerage sub-segment held the highest insurance brokerage market share in 2021 and is anticipated to continue its dominance over the forecast period. Retail brokers and agents are investing in digital technologies to provide services online, boosting revenues and margins in the process. Information is transformed into digital formats through the process of digitalization. This includes offering digitally formatted tools and materials to agents and brokers via insurance portals, exchange websites, and digital distribution methods. These websites and other digital channels are intended to increase company processing efficiency and cut expenses. In the process of collecting insurance premiums, they might speak for customers, insurance companies, or both. When they work to match various client needs with the insurance products that are available, insurance brokers and agents may have contracts with one or more insurance companies.
The insurance brokerage market forecast in the North America held the highest market share in 2021. Due to greater public knowledge of the advantages of insurance coverage and government measures to provide insurance coverage for all citizens, North America held the largest market share in the global insurance market. The United States is the largest market in the North American health insurance industry due to the region's well-organized public healthcare policies and infrastructure.
Key Players in the Global Insurance Brokerage Market
Some of the leading insurance brokerage market analysis players are
- Marsh & McLennan
- AON PLC
- Willis Towers Watson PLC
- Arthur J. Gallagher
- Hub International
- Truist Insurance Holdings
- Acrisure LLC
- Alliant Insurance Services Inc.
- Brown & Brown