Quick and easy: External compeition from insurers using online platforms will moderate industry growth

The Insurance Brokers and Agencies industry in California has exhibited healthy growth over the five years to 2017 as demand for insurance policies has strengthened. For example, written premiums for property and casualty insurance have surged as consumers and businesses alike have experienced increased income. The industry is projected to continue growing, albeit at a slightly slower rate. After a period of relaxed underwriting requirements and expanded capacity, insurance markets in California are projected to slightly harden during the next five years. Additionally, operators will experience increased external competition from direct insurance carriers as they adopt online platforms to sell insurance directly to consumers, businesses and government agencies...read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 12-17
1.7%
Forecast Growth 17-22
Profit
Employment
114,256
Businesses
50,560
What Our Customers Say

Industry Threats & Opportunities

  • Following a period of relaxed underwriting requirements and expanded capacity, insurance markets in California are expected to harden
  • The declining homeownership rate has curbed demand for home-related insurance policies
  • Growth in the number of people with private insurance in California is forecast to slow
  • Industry Report - Industry Analysis Chapter

    The Insurance Brokers and Agencies industry in California has exhibited healthy growth during the five years to 2017, a welcome sign following a period of decline after the US recession in 2008. As the state’s economy has grown during this period, demand for insurance policies has strengthened. In particular, as per capita personal income and corporate profit have risen, both consumers and businesses alike have been able to purchase more insurance policies. In fact, according to the National Association of Insurance Commissioners, California is the largest insurance market in the United States, with insurers earning about $259.0 billion in premiums per year...purchase to read more.

    Additional Insights for the Insurance Brokers & Agencies in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insurance Brokers & Agencies in California Industry are

  • Having links with suppliers
  • Having an extensive distribution network
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Number of People with Private Health Insurance in California and Per Capita Disposable Income in California in the Insurance Brokers & Agencies in California industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Insurance Brokers & Agencies in California Industry?

    This industry includes individuals and businesses that primarily act as agents or brokers in selling insurance policies and annuities in California. Industry participants earn commission income, mostly as a percentage of the premium of insurance policies sold. They also earn some fee income for providing risk management consulting and other value-added services. This industry is only composed of independent brokers and agencies.

    Industry Products
  • Health and medical insurance
  • Personal P&C insurance
  • Life and accident insurance
  • Annuities
  • Insurance administration and risk consulting
  • Commercial P&C insurance
  • Industry Activities
  • Property and casualty insurance policy brokerage
  • Health and medical insurance brokerage
  • Life and accident insurance brokerage
  • Reinsurance brokerage and administration
  • Annuity brokerage
  • Risk management consulting
  • Similar Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Property, Casualty and Direct Insurance
  • Reinsurance Carriers
  • Insurance Brokers & Agencies in New York
  • Insurance Brokers & Agencies in Illinois
  • Third-Party Administrators & Insurance Claims Adjusters in Illinois
  • Third-Party Administrators & Insurance Claims Adjusters in Texas
  • Insurance Brokers & Agencies in Texas
  • Insurance Brokers & Agencies in Florida
  • Third-Party Administrators & Insurance Claims Adjusters in Florida
  • Insurance Brokers & Agencies in Massachusetts
  • Third-Party Administrators & Insurance Claims Adjusters in Massachusetts
  • Third-Party Administrators & Insurance Claims Adjusters in Ohio
  • Insurance Brokers & Agencies in Pennsylvania
  • Third-Party Administrators & Insurance Claims Adjusters in Pennsylvania
  • Insurance Brokers & Agencies in New Jersey
  • Third-Party Administrators & Insurance Claims Adjusters in New Jersey
  • Insurance Brokers & Agencies in Georgia
  • Third-Party Administrators & Insurance Claims Adjusters in Georgia
  • Insurance Brokers & Agencies in Michigan
  • Third-Party Administrators & Insurance Claims Adjusters in Michigan
  • Insurance Brokers & Agencies in Wisconsin
  • Insurance Brokers & Agencies in Washington
  • Insurance Brokers & Agencies in Virginia
  • Insurance Brokers & Agencies in Tennessee
  • Insurance Brokers & Agencies in Missouri
  • Third-Party Administrators & Insurance Claims Adjusters in Missouri
  • Insurance Brokers & Agencies in North Carolina
  • Insurance Brokers & Agencies in Minnesota
  • Insurance Brokers & Agencies in Maryland
  • Insurance Brokers & Agencies in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of People with Private Health Insurance in California
  • Per Capita Disposable Income in California
  • Homeownership Rate in California
  • Number of Businesses in California

  • Current Performance
  • P&C insurance market growth
  • M&A activity rises
  • Chart: Revenue Growth

  • Industry Outlook
  • Hardening insurance markets
  • Competition
  • Table: Insurance Brokers & Agencies in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insurance Brokers & Agencies in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Wholesale Trade
  • Information
  • Educational Services
  • Consumers

  • Key Selling Industries
  • Health & Medical Insurance
  • Life Insurance & Annuities
  • Property, Casualty and Direct Insurance
  • Reinsurance Carriers

  • Products & Services
  • Commercial P&C insurance
  • Personal P&C insurance
  • Health and medical insurance
  • Other
  • Life and accident insurance
  • Annuities
  • Insurance administration and risk consulting
  • Chart: Insurance Brokers & Agencies in California Industry Products and Services Segmentation

  • Major Markets
  • Businesses
  • Individuals aged 45 to 54
  • Individuals aged 35 to 44
  • Individuals aged 65 and older
  • Individuals aged 34 and younger
  • Individuals aged 55 to 64
  • Government
  • Chart: Major Market Segmentation for the Insurance Brokers & Agencies in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Insurance Brokers & Agencies in California

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insurance Brokers & Agencies in California Industry

  • Alliant Insurance Services Inc.Aon CorporationArthur J. Gallagher & Co.Marsh & McLennan Companies Inc.Willis Towers Watson PLC
  • Table: Alliant Insurance Services Inc. - financial performance
  • Table: Aon Corporation - financial performance
  • Table: Arthur J. Gallagher & Co. - financial performance
  • Table: Marsh & McLennan Companies Inc. - financial performance
  • Table: Willis Towers Watson PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Insurance Brokers & Agencies in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Insurance Brokers & Agencies in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Personal Income in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Contingent Commission Arrangement
  • An arrangement in which an insurance broker is paid by the insurer for the placement of business. These arrangements have been deemed inappropriate because of the conflict of interest that they cause.
  • Hard Market
  • A market in which insurance prices are increasing. Insurance markets harden when demand for insurance overshoots supply. The supply of insurance depends on insurers' capital positions.
  • Insurance Agent
  • An individual who is licensed by a state to sell insurance products and services for one or more specific insurance carriers or companies.
  • Insurance Broker
  • An independent agent who represents the buyer during an insurance transaction by trying to find the best policy in regard to coverage and pricing; insurance brokers do not represent the insurer.
  • Soft Market
  • A market in which insurance prices are falling. Insurance markets soften when strong balance sheets cause the supply of insurance to exceed demand.
  • Why buy this report?

    IBISWorld’s Insurance Brokers & Agencies in California Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Insurance Brokers & Agencies in California industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Insurance Brokers & Agencies in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Insurance Brokers & Agencies in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Insurance Brokers & Agencies in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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