Insurance Brokerage Market Trends, Analysis, Size, Growth 2031
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.
Insurance Brokerage Market Analysis
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
Market Size Value in US$ 227.95 billion in 2023 Market Size Value by US$ 573.55 billion by 2031 Growth rate CAGR of 12.2% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Insurance Brokerage Market: Strategic Insights
| Market Size Value in | US$ 227.95 billion in 2023 |
| Market Size Value by | US$ 573.55 billion by 2031 |
| Growth rate | CAGR of 12.2% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Reinsurance Industry Overview
- As digital technologies evolve, insurance brokerage providers are continuously finding new ways to reduce costs, optimize processes, and connect with their customers.
- Insurance brokers are continuing to boost investments in technologies such as artificial intelligence (AI), automation, big data, and others while expanding the use of mobile devices.
- Moreover, the Internet of Things (IoT) provides brokers and insurers with an extensive volume of data and insights to design efficient risk management tools and systems that boost customer information repository, thereby enabling them to offer timely, pertinent coverage based on customer’s needs.
- Furthermore, technology enables to offer personalized services that are increasingly more accurate.
Insurance Brokerage Market Driver
Increase in Demand for Insurance Policies to Drive the Insurance Brokerage Market
- The insurance industry is one of the fastest-growing sectors across the globe. With insurance products like life insurance, health insurance, motor insurance, and others, the industry figures generate huge volumes.
- The distribution of these insurance products is carried out through various channels, such as direct and intermediary channels.
- Intermediary channels include agents, brokers, retailers, bancassurance, and others. Thus any increase in the adoption of insurance products will also increase the insurance brokerage market growth.
- The insurance brokers provide expert advice related to insurance policies based on customer requirements. In return, they are paid brokerage by the insurance company whose policy is chosen.
- Furthermore, the majority of customers prefer buying insurance from a broker to save time and money. Thus, an increase in demand for insurance policies drives the insurance brokerage market.
Insurance Brokerage Market Report Segmentation Analysis
- Based on type, the insurance brokerage market is segmented into life & health insurance and property & casualty insurance. The property & casualty insurance segment is expected to hold a substantial insurance brokerage market share in 2023.
- The property & casualty insurance segment is also expected to hold the highest CAGR over the forecast period due to the rising frequency and severity of natural disasters, which is increasing the need for property insurance coverage.
- Consumers and businesses are increasingly seeking protection against various natural events such as floods, hurricanes, and wildfires, thus driving the segment's growth in the market.
Insurance Brokerage Market Share Analysis By Geography
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.
Insurance Brokerage Market Report Scope
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.
Insurance Brokerage Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. A few recent key market developments are listed below:
- In January 2024, US-based independent insurance brokerage Lockton announced its entry into the Indian market. With over 135 offices worldwide, Lockton's entry into the country is subject to regulatory approval. This will meet India's growing demand for risk consulting and management services.
[Source: Lockton, Company Website]
- In November 2023, insurance broker company RiskBirbal announced the launch of its insurance and risk management products aimed at mitigating financial risks for small and medium businesses. The company uses artificial intelligence and Internet-of-things-based technologies along with risk management strategies to mitigate financial risks and frame solutions for MSMEs.
[Source: RiskBirbal, Company Website]
Insurance Brokerage Market Report Coverage & Deliverables
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-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, End User, Mode and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
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.
- Marsh & McLennan Companies Inc.
- Aon plc
- Willis Towers Watson
- HUB International Limited
- Acrisure, LLC
- Brown & Brown, Inc
- Gallagher
- Lockton
- Truist Insurance Holdings
- USI Insurance Services L.L.C
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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