Taking cover: Operators will achieve higher commissions as insurance policy pricing continues to rise

The Insurance Brokers and Agencies industry in New York includes independent players that act as intermediaries during insurance purchases. Industry revenue is dependent upon three factors: policy pricing, demand for insurance and demand for brokers and agencies services to purchase insurance. Demand for industry services in New York has increased over the period as the percentage of New Yorkers with private health insurance has grown. Over the next five years, the industry is expected grow in-line with statewide steady economic growth. The industry will face competition from primary insurance companies looking to sell directly to consumers by investing in in-house sales teams and technology to make and operate their own websites...read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 12-17
2.1%
Forecast Growth 17-22
Profit
Employment
61,573
Businesses
21,849

Industry Threats & Opportunities

  • The industry will face considerable pricing pressure from competitors like online carriers
  • Revenue increased as higher commissions were earned on costlier healthcare policies
  • Homeownership rates in New York are expected to continue to increase marginally
  • Industry Report - Starting a New Business Chapter

    The Insurance Brokers and Agencies industry has medium barriers to entry; however, barriers can vary depending on the area a new entrant may target. While it is relatively easy for a small player to enter the market, to compete with the industry’s major players, an industry entrant must have access to a significant level of capital to develop brand awareness and reputation, a distribution network, a broad line of complementary insurance-related services and very talented labor.Low concentrationThis industry is characterized as having low market share concentration, with the top four industry participants accounting for 6.9% of total industry revenue. As a result, the industry’s major players do not have significant market power. How...purchase to read more.

    Additional Insights for the Insurance Brokers & Agencies in New York Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insurance Brokers & Agencies in New York 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 F405 Number of people with private health insurance in New York and Homeownership rate in New York in the Insurance Brokers & Agencies in New York industry impact industry performance..

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    What's in this report

    What is the Insurance Brokers & Agencies in New York 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
  • P&C Commercial
  • P&C Personal
  • Health & Medical Insurance
  • Life & Accident Insurance
  • 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
  • Similar Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Property, Casualty and Direct Insurance
  • Reinsurance Carriers
  • Insurance Brokers & Agencies in California
  • 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
  • F405 Number of people with private health insurance in New York
  • Homeownership rate in New York
  • Per Capita Disposable Income in New York
  • Natural disaster index

  • Current Performance
  • Mixed demand for property and casualty insurance
  • Growth in other lines of insurance
  • Complexity drives industry participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Rebound in homeownership and continued economic growth
  • Increased competition from large insurance companies
  • Table: Insurance Brokers & Agencies in New York Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insurance Brokers & Agencies in New York 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
  • P&C Commercial
  • P&C Personal
  • Health & Medical Insurance
  • Life & Accident Insurance
  • Other
  • Annuities
  • Chart: Insurance Brokers & Agencies in New York Industry Products and Services Segmentation

  • Major Markets
  • Businesses
  • Households
  • Government
  • Chart: Major Market Segmentation for the Insurance Brokers & Agencies in New York Industry

  • 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 in New York

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

  • Aon Corporation, Arthur J. Gallagher & Co., Marsh & McLennan Companies Inc., Willis Towers Watson PLC,
  • 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 New York 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 New York Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Extra Stat (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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Insurance Brokers & Agencies in New York 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 New York 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 New York:
    • 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 New York 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 New York, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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