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The insurance brokerage market size is forecast to increase by USD 100.3 billion and is estimated to grow/decline at a CAGR of 7.62% between 2024 and 2028. The increased demand for insurance policies is fueled by various factors, such as growing awareness of the importance of insurance, regulatory changes, and the increasing complexity of risks faced by individuals and businesses. Implementation of distinct valuation strategies helps companies better assess risks and set appropriate premiums, improving their profitability and competitiveness. The rise in High Net Worth Individuals (HNWIs) globally has also contributed to the growth of the industry, as this segment often requires specialized and high-value insurance products and services.
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The Market plays a vital role in connecting Policyholders with Insurers, providing Independent advice on various Insurance Products such as Medical Insurance and Property & Casualty Insurance. Insurance Brokers offer Consumers, including Individuals and Businesses, with access to multiple Insurers and Insurance Policies, ensuring optimal coverage and benefits alignment with their Financial interests. The Insurance Industry is subject to Regulatory Changes, necessitating Risk Assessment and Claims Assistance from Insurance Brokers. Risk Management Consulting is another service provided by Insurance Brokers, helping Clients identify and mitigate potential risks. The Market for Insurance Brokerage continues to evolve, with Emerging opportunities in areas like Health Insurance and Insurance Schemes. Insurance Brokers act as intermediaries, providing valuable insights and expertise to Policyholders, enabling them to make informed decisions. Insurers benefit from Insurance Brokerage by expanding their reach and gaining access to a broader client base. The Projection period for the Market is promising, with continued growth expected due to the increasing demand for comprehensive Insurance coverage. 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.
The increased demand for insurance policies is notably driving market growth. In the dynamic market, businesses and individuals seek expert advice to make informed decisions on various insurance policies. Artificial Intelligence (AI) and digitalization are transforming the industry, with alternative platforms and digital brokers offering automation and claims assistance. Insurance brokerage firms focus on providing maximum benefits to clients, including compensation for accidents, health conditions, and other risks.
Moreover, compliance requirements and ethical conduct are paramount, with ESG considerations increasingly important. Insurance products, such as life, medical, accidental, liability, vehicle, and property insurance, are in high demand. AI and data analytics enable personalized financial services and customer education, enhancing customer interactions and protection. Insurance agents and brokers offer independent advice, ensuring consumers receive the best insurance schemes from various insurance companies. Hence, such factors are driving the market during the forecast period.
The integration of IT and analytics solutions is a key trend shaping the market. In the dynamic market, key players leverage advanced technologies such as Artificial Intelligence (AI) and data analytics to cater to the evolving demands of businesses and consumers. AI and automation streamline processes, enabling swift claims assistance and underwriting services. Alternative platforms, including digital brokers and tools, facilitate customer education and interactions, ensuring ethical conduct and customer protection. Businesses, particularly commercial customers, reap significant benefits from these technological advancements.
Moreover, data analytics enables product design improvement and targeted customer segmentation, while ESG considerations and compliance requirements are met with ease. Digital transformation and blockchain technology further enhance transparency and security in insurance transactions. Insurance brokers and agents utilize these digital tools to provide independent advice and tailored insurance policies and schemes to individuals and insurance companies. Therefore, the integration of IT and data analytics helps prevent losses and fraudulent practices. These factors are expected to support the growth of the market during the forecast period.
Stringent regulatory compliances related to insurance services are challenging market growth. The proliferation of the Internet and smartphones has significantly transformed the insurance industry, leading to an increase in the direct sale of insurance policies. This digital shift has brought about heightened product awareness among consumers, raised customer expectations, and altered buying behaviors.
Moreover, notably, clients now seek direct guidance from insurance firms for specific insurance products, thereby diminishing the role of insurance brokers or intermediaries. This trend not only reduces the costs borne by consumers on intermediaries but also streamlines business processes. Artificial Intelligence (AI) and automation are playing a pivotal role in this digital transformation. AI-driven tools provide customer education, claims assistance, and data analytics, enabling businesses to offer independent advice to clients. Solvency restrictions and a rise in capital requirements will further hinder the growth of the market during the forecast period.
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 also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 share growth by the non-life insurance segment will be significant during the forecast period. These policies insure homes, cars, and others. They cover financial losses that result from fire accidents, floods, hurricanes, earthquakes, theft, travel mishaps, and others.
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The non-life insurance segment was valued at USD 120.50 billion in 2017. They are also known as general insurance and have various advantages, such as compensation for accidental financial losses, improved savings, and economic stability. Some of the major types of these include personal insurance, industrial insurance, commercial insurance, and marine insurance. The demand for property and vehicle insurance plans is high in countries in APAC, such as China, India, Malaysia, and Indonesia. Therefore, brokerage firms are focusing on expanding their customer base in these countries. These factors are expected to drive the growth of the non-life insurance segment during the forecast period.
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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. Factors such as the rising awareness about the need for insurance coverage and the availability of financial advice are driving the growth of the market in North America. The rising number of HNWIs and the growing working capital population are other factors that drive the growth of the market in the region. In addition, adopting an omnichannel marketing strategy will boost the market's growth during the forecast period. Many brokerage firms operate digitally and have adopted automated transaction policies to lower their operational costs. Technological advances further intensify the competition in the market. Established market players are focusing on improving their relationships with customers through digital platforms. This will help them expand their customer base. All these factors, in turn, will drive the growth of the market in North America during the forecast period.
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 market is a significant sector in the financial industry, characterized by the sale and negotiation of insurance policies for clients. This market involves various players, including insurance brokers and intermediaries, who facilitate the buying and selling of insurance policies between insured individuals and insurers. Insurance brokers play a crucial role in the market by providing expert advice to clients on the most suitable insurance policies based on their specific needs. They help clients navigate the complex insurance landscape, ensuring they receive the best possible coverage at competitive prices. The market for insurance brokerage services is diverse and expansive, encompassing various types of insurance, including property and casualty, life, health, and employee benefits.
The market is driven by factors such as increasing consumer awareness of the importance of insurance, growing demand for customized insurance solutions, and the need for risk management in various industries. Insurance brokers use various marketing strategies to reach potential clients, including digital marketing, social media, and targeted advertising and Related services. They also leverage their industry knowledge and relationships with insurers to provide value-added services and build long-term client relationships. In conclusion, the market is a dynamic and essential sector in the financial industry, driven by the need for expert advice and customized insurance solutions. Insurance brokers use various marketing strategies to reach potential clients and build long-term relationships, making this market a vital component of the overall insurance industry.
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, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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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