Free agent: Improving macroeconomic conditions have benefited industry demand

The Insurance Brokers and Agencies industry has grown steadily over the five years to 2018 due to macroeconomic growth, beneficial legislation being passed and positive trends in the insurance sector. As disposable income levels rose during the period, consumers were better suited to pay for more expensive insurance policies. Furthermore, some legislation such as the Private Patient Affordable Care Act (PPACA), mandates that consumers have health insurance, which industry operators help consumers purchase. This helped provide constant demand for insurance products and services provided by industry operators during the period. Over the five years to 2023, the industry is anticipated to grow moderately as the macroeconomic landscape continues to improve...purchase to read more.

Industry Statistics & Market Size
Revenue
$160bn
Annual Growth 13-18
2.7%
Forecast Growth 18-23
Profit
Employment
1.0m
Businesses
422,409

Industry Threats & Opportunities

  • Rising premium policy prices and increasing disposable income have benefited the industry
  • Online brokerage businesses and direct insurance sales pose a threat to industry revenue
  • Industry operators will benefit from an increase in the total number of motor vehicles registered
  • Industry Report - Industry Analysis Chapter

    The Insurance Brokers and Agencies industry is an important component of the insurance sector, as insurance brokerages and agencies represent clients and insurance carriers during the insurance purchasing process. Brokers are generally independent agents who represent the buyer, rather than the insurance company, during the insurance purchasing process. In contrast, agents represent various insurance companies during the transaction process.The industry generates the majority of its revenue through commission from insurance sales and risk management services. In turn, commission depends on the level of transaction activity and premium pricing, which differ among insurance products. Dur...purchase to read more.

    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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Industry participation trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Expansion of car, life and health insurance coverage
  • Demand conditions
  • Table: Insurance Brokers & Agencies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insurance Brokers & Agencies 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
  • Other
  • Health and medical insurance
  • 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 and households
  • Government
  • Chart: Major Market Segmentation for the Insurance Brokers & Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWages and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Insurance Brokers & Agencies

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

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

  • 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
    Table: Industry Data for the Insurance Brokers & Agencies Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Insurance Brokers & Agencies Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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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