Spotty coverage: New healthcare legislation will offset gains from new business formation in the state

The Insurance Brokers and Agencies industry in Massachusetts is a pivotal component of the larger insurance sector in the state. Industry operators act as intermediaries in the insurance purchasing process. Agencies tend to represent multiple insurance providers in the purchasing process, while brokers act independently and seek out the most affordable insurance policy that fits their client's needs. Accordingly, being in geographic proximity to areas densely populated by businesses and individuals is important to industry operators' success. Overall, industry revenue in Massachusetts has increased an annualized 0.6% to $3.8 billion over the five years to 2018...purchase to read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
0.6%
Forecast Growth 18-23
Profit
Employment
20,980
Businesses
6,179

Industry Threats & Opportunities

  • As new businesses open in Massachusetts, industry operators are expected to benefit from increased demand for their services
  • Industry Report - Industry Locations Chapter

    Total business distribution in any given state for the Insurance Brokers and Agencies industry tends to trend in line with population density. Since major markets for the industry are businesses and individuals, operators tend to open locations in highly populated parts of a state. Accordingly, the North Shore region of Massachusetts, which is the most densely populated with 34.8% of Massachusetts population, also has the highest concentration of industry establishments at 32.1% in 2018. Similarly, the Greater Boston region is home to 21.7% of the state's population and 26.4% of industry establishments in 2018. The only other region in Massachusetts that comprises over 15.0% of industry establishment is the Southern region, which is home to 15.9% of industry establishments...purchase to read more.

    Additional Insights for the Insurance Brokers & Agencies in Massachusetts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insurance Brokers & Agencies in Massachusetts 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 in Massachusetts and Number of businesses in Massachusetts in the Insurance Brokers & Agencies in Massachusetts industry impact industry performance..

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    What's in this report

    What is the Insurance Brokers & Agencies in Massachusetts Industry?

    This industry includes individuals and businesses that primarily act as agents or brokers 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
  • Life and accident insurance
  • Health and medical insurance
  • Property and casualty insurance - personal lines
  • Property and casualty insurance - commercial lines
  • 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 California
  • 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
  • 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
  • Homeownership rate in Massachusetts
  • Number of businesses in Massachusetts
  • Number of employees in Massachusetts
  • Per capita disposable income in Massachusetts

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insurance Brokers & Agencies in Massachusetts 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
  • Property and casualty insurance - commercial lines
  • Property and casualty insurance - personal lines
  • Other
  • Health and medical insurance
  • Life and accident insurance
  • Chart: Insurance Brokers & Agencies in Massachusetts Industry Products and Services Segmentation

  • Major Markets
  • Businesses
  • Individuals
  • Government
  • Chart: Major Market Segmentation for the Insurance Brokers & Agencies in Massachusetts Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Insurance Brokers & Agencies in Massachusetts

  • Basis of Competition
    Barriers to Entry
    Eastern Insurance, Hub Group Inc., Marsh & McLennan Companies Inc., USI Insurance,
  • Table: Eastern Insurance - financial performance
  • Table: Hub Group Inc. - financial performance
  • Table: Marsh & McLennan Companies Inc. - financial performance
  • Table: USI Insurance - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Insurance Brokers & Agencies in Massachusetts 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 Massachusetts Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • MA - Per capita disposable income in Massachusetts (2009-2023)

  • 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 exceeds 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 in Massachusetts 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 in Massachusetts:
    • 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 Massachusetts 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 Massachusetts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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