Industry Analysis & Industry Trends
The Global Insurance Brokers and Agencies industry is a critical part of the insurance market, distributing policies and providing advisory services to insurance underwriters and consumers. Given the transaction-based nature of the industry, revenue primarily depends on three factors: policy pricing, demand for insurance and the popularity of using agents and brokers in the distribution process. Despite a softening insurance market in recent years, operators' efforts to boost the industry's attractiveness as a purchasing channel have largely offset this trend. Consequently, over the five years to 2013, industry revenue is anticipated to grow at an annualized rate of 3.2% to reach $413.3 billion.
An estimated 86.8%... read more
Subdued demand and price conditions among primary insurance markets have tempered the performance of the Global Insurance Brokers and Agencies industry over the five-year period. For example, in the US market, the producer price index for insurance brokers and agencies is only anticipated to increase at an annualized rate of 0.5% from 2008 to 2013, according to the latest available data from the Bureau of Labor Statistics; this reflects softening in underwriting prices. Fortunately for the industry, operators' efforts to boost the industry's attractiveness as an insurance distribution and purchasing channel have been successful in slowing these head winds... read more