Industry Analysis & Industry Trends
Online insurance brokers have benefited in part from an increasing percentage of services conducted online and in part from the economic recession. The majority of insurance policies are now initiated online; however, most are still completed using an agent. The potential to convert more consumers to completing the purchase online points to stronger growth during the next five years. Accelerated revenue growth will be fostered by further consumer movement to online services, the improving economy and healthcare reform.... purchase to read more
Industry Report - Industry Investment Chapter
The Online Insurance Brokers industry operates with a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.05 to capital investment. The industry's level of capital intensity has remained the same over the five-year period, as the industry also allocated $0.05 in capital expenditure per dollar in wages in 2011. Given their web-based service systems, industry operators are required to invest heavily in computers, software and other equipment. Moreover, a significant share of annual sales is typically allocated to servers and website creation or adjustments.
However, industry operators still extensively rely on labor for each of their product offerings... purchase to read more