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The insurance brokerage market size is forecast to increase by USD 100.3 billion at a CAGR of 7.62% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing demand for personalized insurance policies and the integration of mobile apps and online platforms for easier access to insurance services. Monetarily, the market is projected to expand due to the direct purchase of policies by personal customers seeking customized coverage for property and casualty insurance. The regulatory environment and regulatory changes continue to influence the market, with reinsurance playing a crucial role in risk management. Technology advancements, such as IT and analytic solutions, are transforming the industry, enabling insurers to offer more efficient and effective services. However, challenges remain, including the need for compliance with evolving regulations and the requirement for continuous innovation to meet the changing needs of policyholders. The market is expected to remain dynamic, with ongoing trends shaping its future trajectory.
The market plays a crucial role in the insurance industry by acting as intermediaries between policyholders and insurers. Brokers provide independent advice to clients, including individuals and businesses, on various insurance products such as medical insurance, property & casualty insurance, and health insurance. They help consumers understand their insurance needs, assess risks, and choose the most suitable insurance policies based on their financial interests. Insurance brokers offer related services, including claims assistance, risk management consulting, and regulatory compliance. These services are in high demand due to the increasing complexity of insurance policies and regulatory changes. The market is projected to experience significant growth during the projection period due to emerging opportunities in the industry.
Further, insurance companies benefit from the services of insurance brokers by expanding their reach and gaining new clients. Brokers also help insurers manage risk by providing detailed risk assessments and offering customized insurance schemes. Overall, the market is an essential component of the insurance industry, providing valuable services to policyholders and insurers alike.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The non-life insurance segment is estimated to witness significant growth during the forecast period. The market is experiencing digital transformation, with consumers increasingly relying on digital brokers and tools for their insurance needs. This shift is particularly noticeable in the non-life insurance segment, which is projected to grow at a significant rate during the forecast period. General insurance policies, also known as non-life insurance, provide coverage for financial losses resulting from various risks such as fire, floods, hurricanes, earthquakes, theft, and travel mishaps. These policies offer several advantages, including compensation for accidental financial losses, improved savings, and economic stability. The major types of general insurance policies include personal insurance, industrial insurance, commercial insurance, and marine insurance.
Personal insurance policies encompass medical insurance, accidental insurance, property insurance, and vehicle insurance. As consumers demand more transparency and ethical conduct from their insurance providers, there is an increasing focus on ESG considerations in the insurance industry. Data analytics plays a crucial role in enabling brokers to offer customized solutions to their clients based on their unique risk profiles. Overall, the market presents emerging opportunities for digitalization and customer education, with a focus on enhancing customer interactions and protection.
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The non-life insurance segment accounted for USD 120.50 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is experiencing significant growth due to increasing consumer awareness regarding the importance of insurance coverage and the availability of financial advice. The presence of a large and growing high net worth individual (HNWI) population is a major driver of market expansion in the region. According to recent estimates, there were over 7.4 million HNWIs in the US in 2021, representing an increase of approximately 4.2% to 5.4% compared to the previous year. This demographic segment plays a crucial role in fueling market growth. Additionally, the digitalization of the insurance industry through the adoption of digital brokers and tools is creating new opportunities for customer education, interactions, and protection. The integration of data analytics and ethical conduct into the digital transformation of insurance brokerage is also a key trend, with a growing emphasis on Environmental, Social, and Governance (ESG) considerations.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased demand for insurance policies is the key driver of the market. The market is experiencing significant changes due to advancements in technology, shifting customer demographics, and evolving business needs. Artificial Intelligence (AI) and automation are transforming the industry by streamlining processes, improving risk assessment, and enhancing claims assistance. Alternative platforms, such as blockchain, are also gaining traction for their potential to increase transparency, reduce fraud, and ensure compliance requirements. These innovations offer substantial benefits for both insurance brokers and their commercial customers. For instance, AI-powered actuarial models enable more accurate pricing policies, while blockchain technology ensures secure and efficient data sharing. As a result, the market for insurance brokerage services is witnessing a high demand for various types of insurance policies, including accidental, life, medical, vehicle, liability, and property insurance. The growing population of baby boomers and millennials, who prioritize personalized financial services and security, further fuels the market's growth.
Integration of IT and analytic solutions is the upcoming trend in the market. The market is witnessing significant advancements with key players integrating Artificial Intelligence (AI) and alternative platforms to enhance their offerings. AI and automation are revolutionizing the industry by streamlining processes, improving claims assistance, and ensuring compliance requirements. Businesses, both commercial and individual, are reaping the benefits of these technological innovations, including faster compensation and enhanced customer experience. Blockchain technology is another game-changer, offering transparency and security in transactions. Data analytics plays a crucial role in this digital transformation, enabling firms to gain valuable insights from raw data. Advanced analytic solutions employ simulation and stochastic techniques to forecast market trends and identify hidden data patterns.
These insights aid in effective marketing strategies, product design improvement, and targeted customer engagement. Moreover, business intelligence is a key focus area, converting raw data into actionable insights. companies are investing in AI and machine learning to automate underwriting, claims processing, and risk assessment. These advancements not only improve operational efficiency but also reduce errors and fraud. Overall, the integration of technology is transforming the market, offering numerous opportunities for growth and innovation.
Direct purchase of insurance policies by customers is a key challenge affecting the market growth. The market is experiencing significant changes due to technological advancements and shifting consumer preferences. Artificial Intelligence (AI) and automation are transforming the industry, with alternative platforms offering direct sales of insurance policies to businesses and individual clients. This trend is driven by the global proliferation of the Internet and smartphones, which have increased product awareness, elevated customer expectations, and altered buying behaviors. However, the elimination of insurance brokers or intermediaries from the sales process may limit the growth of The market. Despite this, the benefits of AI and blockchain technology in claims assistance and compliance requirements are compelling.
These technologies offer faster compensation processing, improved accuracy, and enhanced security. As businesses continue to navigate the complexities of the insurance landscape, the role of insurance brokers may evolve rather than disappear, providing expert advice and navigating the intricacies of insurance policies and regulatory requirements.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acrisure LLC - The company offers insurance brokerage solutions for businesses. They also offer financial technology and insurance services.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a dynamic and evolving industry that connects two parties - businesses and individuals - with insurance companies and insurers. Insurance brokerage involves the sale, service, and management of various insurance policies and products, including property and casualty, life and health, and specialty insurance. The market is experiencing digital transformation with the emergence of digital brokers, online platforms, and insurtech startups. These digital tools offer benefits such as customer education, claims assistance, and personalized insurance policies. However, the market faces challenges and restraints, including regulatory changes, compliance requirements, and ethical conduct. The regulatory environment is becoming more complex, with increasing demands for ESG considerations and sustainable business practices.
Additionally, the use of artificial intelligence, data analytics, and blockchain technology is changing the landscape of the industry. Insurance brokers provide independent advice to clients, helping them navigate the complex insurance landscape and make informed decisions. They offer risk assessment and management consulting services, as well as related services such as underwriting and reinsurance. The market is projected to grow during the projection period, driven by the increasing number of commercial and personal customers, compensation for losses, and the monetarily valuable role of insurance in mitigating risks. The insurance industry is undergoing digitalization, with the use of digital tools and IoT devices for risk assessment and claims processing.
This trend is expected to continue, with insurtech startups disrupting traditional insurance business models and offering innovative solutions. Despite these opportunities, insurance brokers must adapt to the changing landscape and address the challenges of regulatory changes, compliance requirements, and ethical conduct to remain competitive.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.62% |
Market Growth 2024-2028 |
USD 100.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.63 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acrisure LLC, Alliant Insurance Services Inc., AmWINS Group Inc., Aon plc, Arthur J. Gallagher and Co., Assured Partners Inc., Beacon Insurance Brokers Pvt. Ltd., Brown and Brown Inc., Funk Group GmbH, Hellman and Friedman LLC, India Insure Risk Management & Insurance Broking Services Pvt. Lt, Lockton Companies, Mahindra and Mahindra Ltd., Marsh and McLennan Companies Inc., Navnit Insurance Broking Pvt. Ltd., NFP Corp., Regent Insurance Brokers Europe GmbH, Truist Financial Corp., USI Insurance Services, and Willis Towers Watson Public Ltd. Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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