The insurance brokerage market size is expected to grow from US$ 227.95 billion in 2023 to US$ 573.55 billion by 2031; it is anticipated to expand at a CAGR of 12.2% from 2023 to 2031. The market includes growth prospects owing to the current insurance brokerage market trends and their foreseeable impact during the forecast period. The market is a large and expanding sector of the insurance industry. The insurance brokerage market is growing due to factors such as an increase in demand for insurance policies and the expansion of digital brokers. Further, favorable government initiatives provide lucrative opportunities for market growth. However, the availability of alternative online platforms for purchasing insurance restraints the market growth.
Reinsurance is referred to as insurance for insurance companies. It is a contract between a reinsurer and an insurer. Reinsurance helps insurers stay in business by recouping all or part of the money they have paid to claimants. Reinsurance lowers the net liability for specific risks and provides disaster protection against significant or numerous losses. Insurers buy reinsurance for four reasons: to boost capacity, to stabilize loss experience, to protect themselves and the insured against disasters, and to limit liability on a particular risk. Reinsurance increases the insurer's capacity to bear the financial burden in the event of uncommon, significant events by protecting it from accumulated liabilities. This provides the insurer with more assurance of its equity and solvency. In order to maintain the solvency margins, insurers can underwrite policies that cover a greater amount of risk without unnecessarily increasing administrative expenses by the use of reinsurance. Furthermore, reinsurance provides insurers with significant liquid assets in the event of extraordinary losses.
Globalization has evolved in recent decades as a result of the expansion of commercial and financial networks that cross national borders, making businesses and workers from other economies increasingly interconnected. Greater globalization creates more chances for international investments, resulting in more investment-linked programs. Moreover, industrialization also facilitates increased investments, cross-broader collaborations, partnerships and joint ventures, facilitating the insurance brokerage market growth.
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Insurance Brokerage Market: Strategic Insights
Increase in Demand for Insurance Policies to Drive the Insurance Brokerage Market
The scope of the insurance brokerage market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant insurance brokerage market share. The region's significant economic development, growing population, and increasing focus on risk management and insurance policies have contributed to the growth of the market in the region.
The regional trends and factors influencing the Insurance Brokerage Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Insurance Brokerage Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 227.95 Billion |
| Market Size by 2031 | US$ 573.55 Billion |
| Global CAGR (2023 - 2031) | 12.2% |
| Historical Data | 2021-2023 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Insurance Brokerage Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Insurance Brokerage Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The "Insurance Brokerage Market Analysis" was carried out based on type, end-user, mode, and geography. On the basis of type, the market is segmented into property & casualty reinsurance and life & health reinsurance. Based on the end user, the market is segmented into corporate and individual. Based on mode, the market is segmented into online and offline. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. A few recent key market developments are listed below:
[Source: Lockton, Company Website]
[Source: RiskBirbal, Company Website]
The insurance brokerage market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Insurance Brokerage Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
The increase in demand for insurance policies and the expansion of digital brokers are the major factors that propel the global insurance brokerage market.
The global insurance brokerage market was estimated to be US$ 227.95 billion in 2023 and is expected to grow at a CAGR of 12.2 % during the forecast period 2023 - 2031.
Integration with IT and analytics solutions is anticipated to play a significant role in the global insurance brokerage market in the coming years.
The key players holding majority shares in the global insurance brokerage market are Marsh & McLennan Companies Inc.; Aon plc; Willis Towers Watson; HUB International Limited; and Acrisure, LLC.
The global insurance brokerage market is expected to reach US$ 573.55 billion by 2031.