Overview

Taking cover: Increasing car sales and homeownership rates will boost demand

The Insurance Brokers & Agencies market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry will face considerable pricing pressure from competitors like online carriers
  • Online brokerage businesses and direct insurance sales have threatened the industry
  • Life and health insurers will likely benefit from improvements in the general economy

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    Industry Analysis & Industry Trends

    As a vital part of the insurance sector, the Insurance Brokers and Agencies industry has grown steadily in the wake of a strengthening economic backdrop, from rising disposable income levels and lower unemployment rates. Since 2012, the industry has faced increased competition from underwriters that provide insurance services directly to clients. These companies are attempting to reduce their reliance on independent brokerages and agencies by expanding their sales abilities through investing in company-owned sales websites and diversifying their sales divisions. Over the next five years, the industry is anticipated to grow moderately as the macroeconomic landscape continues to improve...

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    Industry Report - Industry SWOT Analysis Chapter

    The Insurance Brokers and Agencies industry is in the mature stage of its economic life cycle; this stage is characterized by slowing product development and extensive merger and acquisition (M&A) activity. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 2.6% over the 10 years to 2022. In contrast, US GDP is projected to grow at an annualized rate of 2.0% over the same period. Industry growth is generally influenced by economic conditions and cycles within the primary insurance market. Traditionally, soft markets are associated with slow industry growth because lower rates mean smaller commissions. In ..

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    Additional Insights for the Insurance Brokers & Agencies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insurance Brokers & Agencies 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 Homeownership rate and Number of motor vehicle registrations in the Insurance Brokers & Agencies industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Insurance Brokers & Agencies Industry?

    This industry includes individuals and businesses that primarily act as agents or brokers in selling insurance policies and annuities. 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
    Commercial P&C insurance
    Personal P&C insurance
    Health and medical insurance
    Life and accident insurance
    Insurance administration and risk consulting
    Annuities
    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

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Homeownership rate
  • Number of motor vehicle registrations
  • Number of people with private health insurance
  • Per capita disposable income
  • Natural disaster index

  • Current Performance
  • Hardening cycle leads to growth
  • Competition heightens
  • M&A activity escalates
  • Chart: Revenue Growth

  • Industry Outlook
  • Expansion of car, life and health insurance coverage
  • Revenue rebounds despite competition
  • Table: Insurance Brokers & Agencies Industry Revenue Outlook

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

  • Products & Markets
    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 Industry Products and Services Segmentation

  • Demand Determinants
  • Consumer and business spending
  • Investment performance of life insurance
  • Healthcare costs
  • Product innovation
  • The insurance cycle

  • 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 Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insurance Brokers & Agencies Industry

  • Industry Globalization
    Major Companies
    Aon CorporationMarsh & McLennan Companies Inc.Willis Towers Watson PLCArthur J. Gallagher & Co.
  • Table: Aon Corporation - financial performance
  • Table: Marsh & McLennan Companies Inc. - financial performance
  • Table: Willis Towers Watson PLC - financial performance
  • Table: Arthur J. Gallagher & Co. - financial performance

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

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Insurance Brokers & Agencies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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 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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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