- Published: July 2014
- Region: Global
Insurance Agencies & Brokerages in the US
- Published: April 2014
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry act as agents to sell insurance policies and annuities underwritten by insurance carriers. Major companies include Arthur J Gallagher, Brown & Brown, and Marsh (all based in the US), as well as Aon, Lloyd's of London, and Willis Group (all based in the UK); and CNinsure (China).
The global insurance industry generates about $4 trillion in premium volume each year. Sales of insurance have been highest recently in Latin America, Russia, and the Middle East.
The US insurance agencies and brokerages industry includes about 130,000 establishments (single-location companies and branches of multi-location companies) with annual revenue of about $105 billion.
Many companies that primarily offer insurance products to businesses function mainly as brokers. Captive agencies operate as a sales agent for a single insurer, working on its behalf; independent brokers sell products from several providers. Underwriters of insurance coverage, including health insurance carriers, are covered in separate industry profiles.
Demand is related to consumer income and commercial business activity. When the economy grows, so does the demand for personal and business insurance. When the economy contracts, as it did in the late 2000s, demand for insurance falls. Despite the prominence of large companies in the commercial segment, the US industry remains highly fragmented: the largest 50 firms only hold 25 percent of the total market.
The profitability of individual agencies depends on effective marketing, client referrals, and customer service. Large agencies have advantages in name... SHOW LESS READ MORE >
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