Insurance Broker And AgentsIndustry Prospective:
The global insurance brokers and agents market size was worth around USD 259.39 billion in 2022 and is predicted to grow to around USD 486.26 billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.20% between 2023 and 2030.
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Insurance Broker And Agents Market: Overview
Insurance brokers and agents are individuals working in the larger financial services industry. Insurance, by definition, is a method of protection against financial loss caused by an unprecedented situation and in exchange for a fixed fee or premium. It is a contractual obligation between parties where the one offering the services is obligated to pay the service user a fixed sum of money in the event of a loss, injury, or damage. Insurance is considered an excellent form of risk management and applies to humans and objects where people can either insure the life and health of themselves or their loved ones and they can also insure a prized possession.
Insurance brokers and agents act as the mediators between the parties involved in the transaction. The main difference between an insurance broker and an insurance agent is determined by the party they are representing. For instance, an insurance broker works toward the exact financial needs of the clients and offers a range of options suiting their needs while an insurance agent works for an insurance-providing company or organization. They act as sales representatives for a brand. The insurance broker and agent industry is growing at a rapid rate and will continue the same trend in the coming years.
Key Insights:
- As per the analysis shared by our research analyst, the global insurance brokers and agents market is estimated to grow annually at a CAGR of around 8.20% over the forecast period (2023-2030)
- In terms of revenue, the global insurance brokers and agents market size was valued at around USD 259.39 billion in 2022 and is projected to reach USD 486.26 billion, by 2030.
- The insurance brokers and agents market is projected to grow at a significant rate due to the growing number of policy and insurance holders
- Based on insurance type segmentation, health & medical insurance was predicted to show maximum market share in the year 2022
- Based on type segmentation, individual was the leading segment in 2022
- On the basis of region, North America was the leading revenue generator in 2022
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Insurance Broker And Agents Market: Growth Drivers
Growing number of policy and insurance holders to drive market growth
The global insurance broker and agents market is projected to grow owing to the increasing number of people investing in life, health, and property insurance. There are several personal, psychological, and environmental factors that have resulted in an increased demand for comprehensive insurance policies. In Europe alone, more than 9000 insurance companies are providing insurance-related services whereas over 200 million European citizens are claimed to be insured as per the European Health Insurance Card (EHIC).
One of the primary drivers for life or health insurance policies is the growing prevalence of medical diseases especially during and after COVID-19. Medical conditions have evolved over the years and every individual is at risk of contracting some form of serious medical disease. The growing pollution rate, changing food habits, poor lifestyle, lack of exercise, and a generally weak immune system along with genetic factors have resulted in extreme pressure on the global healthcare sector. In addition to this, with the rising inflation rate, medical expenses have reached new heights. This includes treatment, medicine, and post-treatment care expenses. The American Cancer Society claims that nearly 6 lakh people died in 2022 in the US alone due to cancer.
Rising demand for improved employee benefits to create a higher demand
Employees across the world are demanding better compensation & benefits and company-covered insurance policies are an important aspect of employee benefits. Businesses are investing more in these rights to ensure retaining good talent and attracting prospective employees. Expanding insurance benefits to employee family members is an excellent strategy adopted by several corporate houses to ensure employee satisfaction.
Insurance Broker And Agents Market: Restraints
Existing prejudices against insurance brokers and agents to restrict market growth
Due to a lack of awareness and accurate information, there are widespread prejudices and perceptions against insurance brokers and agents. Although the exact mindset of a person may differ depending on past experiences and awareness, however; many people associate insurance agents or brokers with high commissions. In addition to this, insurance policies in general are too complex for common people to understand since they consist of several terms and conditions that are not evident. In the past few years, several incidents of claim rejection have been reported owing to these complex conditions resulting in failure to generate confidence amongst the general population. This could severely impact the global insurance brokers and agents market growth during the forecast period.
Insurance Broker And Agents Market: Opportunities
Growing adoption of digital technology and systems in the industry to create growth opportunities
The insurance broker and agents industry is likely to be revolutionized owing to the rising trend of digital transformation in the sector. Insurance companies are leveraging the benefits of advanced technologies such as Blockchain and Artificial Intelligence (AI) technologies to provide enhanced customer experience. Companies providing insurance are investing in training insurance agents to use new-age systems that allow them access to a broad group of potential customers. Agents can use these tools to create an effective pitch and deliver services using digital mediums. This allows them to save resources and perform better. On the other hand, information technology (IT) professionals are working on developing applications where insurance buyers can talk to a large number of brokers and choose the one that meets their requirements.
Increased demand for product insurance to create higher growth possibilities
There has been a steady increase in the demand for product insurance policies where people protect themselves against financial loss due to damage to a product or property. For instance, home insurance protects policyholders against damage to property, loss or theft of the insured product, or damages caused by natural disasters. The growing frequency of damage caused by floods, tornadoes, and other natural calamities has created a broader market for insurance brokers and agents.
Insurance Broker And Agents Market: Challenges
Industry players are likely to deal with multifaceted challenges
The insurance brokers and agents industry size is plagued with several challenges. For instance, the insurance brokers and agents sector is highly regulated as there are several guidelines for companies to provide financial services. In addition to this, the competition is extremely intense as there are multiple service providers present in the market which directly impacts profit margins for all players involved in the business. Companies that have adopted digital systems are vulnerable to cyber-crimes requiring them to invest in protection measures leading to increased expense.
Insurance Broker And Agents Market: Segmentation
The global insurance brokers and agents market is segmented based on insurance type, type, end-user, mode, and region.
Based on insurance type, the global market divisions are health & medical insurance, life insurance, and property & casualty insurance. In 2022, the highest demand was observed for health & medical insurance. Research and studies indicate that COVID-19 played a crucial role in segmental growth. Growing healthcare expenses, an increasing number of patients, and rising demand for corporate health insurance are expected to push the segment toward new growth avenues during the projection period. In India, there are around 30 most promising health insurance companies catering to the needs of the growing population.
Based on type, the insurance brokers and agents industry segments are insurance brokers, insurance agencies, bancassurance, and other intermediaries.
Based on the end-user, the insurance brokers and agents industry divisions are individual and corporate. In 2022, the individual segment controlled around 52% of the segmental share. The driving factors were options to customize individual healthcare policies, tax rebates and subsidies provided by the government for undertaking insurance from state-owned agencies and increasing initiatives by regional governments to develop national healthcare insurance schemes.
Based on mode, the global market divisions are online and offline.
Insurance Broker And Agents Market: Report Scope
| Report Attributes | Report Details |
|---|---|
| Report Name | Insurance Broker And Agents Market |
| Market Size in 2022 | USD 259.39 Billion |
| Market Forecast in 2030 | USD 486.26 Billion |
| Growth Rate | CAGR of 8.20% |
| Number of Pages | 226 |
| Key Companies Covered | Willis Towers Watson, Arthur J. Gallagher & Co., The Hartford Financial Services Group, Marsh & McLennan Companies, Alliant Insurance Services Inc., Aon plc, Gallagher Affinity, Brown & Brown Inc., HUB International, Lockton Companies, USI Insurance Services, NFP (National Financial Partners), Jardine Lloyd Thompson Group (JLT), and others. |
| Segments Covered | By Insurance Type, By Type, By End-User, By Mode, and By Region |
| Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA) |
| Base Year | 2022 |
| Historical Year | 2017 to 2021 |
| Forecast Year | 2023 - 2030 |
| Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
Insurance Broker And Agents Market: Regional Analysis
North America to maintain its lead during the forecast period
The global insurance brokers and agents market will be dominated by North America during the forecast period with the US acting as the most dominant region. The growth trajectory can be attributed to the prevalence and acceptance of insurance policies for life, health, property, and private possessions. North American countries are filled with multiple insurance companies employing agents to sell insurance schemes to potential buyers. These companies have entered new markets, especially targeting emerging economies with rising middle-income groups. Another key contributor is the growing integration of modern tools and digital systems to improve customer experience. The presence of an expansive public healthcare system and several insurance policies concerning the health of the general population is likely to trigger higher regional growth. Europe is projected to grow at a steady pace. These agents help the common man understand the complex insurance structure in Europe and make informed decisions.
Insurance Broker And Agents Market: Competitive Analysis
The global insurance brokers and agents market is led by players like:
- Willis Towers Watson
- Arthur J. Gallagher & Co.
- The Hartford Financial Services Group
- Marsh & McLennan Companies
- Alliant Insurance Services Inc.
- Aon plc
- Gallagher Affinity
- Brown & Brown Inc.
- HUB International
- Lockton Companies
- USI Insurance Services
- NFP (National Financial Partners)
- Jardine Lloyd Thompson Group (JLT)
The global insurance brokers and agents market is segmented as follows:
By Insurance Type
- Health & Medical Insurance
- Life Insurance
- Property & Casualty Insurance
By Type
- Insurance Brokers
- Insurance Agencies
- Bancassurance
- Other Intermediaries
By End-User
- Individual
- Corporate
By Mode
- Online
- Offline
By Region
- North America
- The U.S.
- Canada
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
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