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The insurance brokerage market is estimated to grow by USD 75.24 billion at a CAGR of 6.24% between 2022 and 2027. 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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This market report extensively covers market segmentation by type (non-life insurance and life insurance), end-user (individuals and corporate), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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 115.69 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 43% 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 is driven by the need for independent advice and related services in the insurance industry. The brokers act as intermediaries between policyholders and insurers, offering a wide range of insurance products such as medical insurance, property & casualty insurance, and health insurance. They cater to the diverse needs of consumers, including individuals and businesses, by providing tailored insurance policies and risk management consulting. The market is influenced by regulatory changes and focuses on risk assessment and claims assistance. Despite facing restraints and challenges, such as changing demands, the market offers emerging opportunities for growth, benefiting both clients and companies by ensuring their financial interests and providing effective insurance schemes. Our researchers analyzed the data with 2022 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. Purchasing an insurance policy is a significant financial decision for customers. To ensure efficient pricing, insurance brokerage firms are focusing on effective sales strategies and developing actuarial models. The growing populations of baby boomers and millennials present growth opportunities for insurance brokerage firms. These firms are emphasizing policies that offer maximum benefits, leading to increased demand for these products. This trend is driving the focus on independent advice, related services, and innovative schemes that cater to the financial interests of customers. There is a high demand for various types of insurance, such as accidental, life, medical, vehicle, liability, and property insurance.
The market has a strong demand for effectively priced insurance policies. These firms are investing in innovative products and services to capitalize on opportunities in emerging markets. Additionally, increasing awareness about the benefits of these policies is expected to drive demand during the forecast period. These factors are anticipated to stimulate market growth in the coming years.
The integration of IT and analytics solutions is a key trend shaping the market. Market companies are integrating IT and analytics solutions to maximize their sales. Analytics solutions help in creating effective marketing strategies and underwriting services. Data analytics helps firms with product design and customer targeting through simulation and stochastic techniques. In addition, these brokers use data analytics tools to maintain a competitive edge. Such tools use complex models and predict possible future outcomes to identify hidden data patterns. Major market companies are focusing on business intelligence to analyze the current market scenario. This improves decision-making, enhances performance, improves customer service, and generates high profits.
Established analytics firms have collaborated with brokerage companies to expand their customer base. The integration of IT and analytics helps customers access vital information about portfolio metrics, financial risks, pricing inadequacies, and profitability. These solutions facilitate actuarial and underwriting, claims processing, prevention of identity theft, and checking fraud. 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. Governments of various countries have imposed strict regulatory norms on capital requirements, regional operations, and commission rates, which limit the scope of brokerage services. To adhere to such stringent regulations, these brokerage firms should restructure their operations, capital systems, corporate management, and information systems.
Regulatory compliances help eliminate unethical brokers in the market. They protect customers and reduce the degree of risks associated with insurance policies. For instance, in the UAE, the Insurance Authority has imposed stringent regulations on these brokerage firms. Under these regulations, a brokerage firm is required to obtain a renewable license from the Insurance Authority prior to its operations. Solvency restrictions and a rise in capital requirements will further hinder the growth of the market during the forecast period.
The market 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 growth strategies.
Global Market 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. It also offers financial technology and insurance services.
The research 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is experiencing significant transformation due to digitalization, automation, and the rise of insurtech startups. Artificial Intelligence and blockchain are being used to enhance customer interactions and provide personalized insurance policies. Digital brokers are leveraging online platforms and mobile apps to reach a wider audience and offer alternative platforms for insurance solutions. ESG considerations and sustainable business practices are becoming key factors in decision-making. The market is segmented by insurance type, including life and health insurance and property and casualty insurance. Compliance requirements and regulatory environments play a crucial role in shaping the industry's future.
As intermediaries between policyholder and insurance companies, insurance brokers play a pivotal role in securing coverage tailored to individual needs. Yet, amidst the evolving landscape, challenges abound. From regulatory restraints to market fluctuations, brokers face a myriad of obstacles in delivering optimal solutions. Meanwhile, policyholders grapple with understanding complex policies and navigating claims processes. Looking ahead, the projection period unveils both opportunities and hurdles. Technological advancements promise efficiency, yet raise concerns about data security. Moreover, shifting consumer expectations demand greater transparency and customization. In this dynamic environment, adaptability will be key for all stakeholders to thrive.
Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.24% |
Market growth 2023-2027 |
USD 75.24 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.2 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
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. Ltd., 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 forecast, Market Forecasting, 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 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. |
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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