Not so sure: Pandemic-related declines and technological advances have threatened the industry
Global insurance brokers and agencies play a critical role in the insurance market by distributing policies and consulting insurance underwriters and consumers. The revenue is mainly transaction-based and hinges on policy pricing, insurance demand and the use of agents and brokers in the distribution process. The pandemic negatively impacted the insurance industry, mainly driven by weakening per capita income, plunging consumer confidence and harming the health of the corporate sector. While technological changes have enabled brokers and agents to source products from multiple upstream underwriters, it has also enabled consumers to bypass agents and brokers during the insurance buying process, threatening profitability. Due to these trends, revenue has been declining at an estimated CAGR of 1.9% to $542.6 billion, including a 0.8% drop in 2023 alone.
Operators in the Global Insurance Brokers and Agencies industry act as brokers or agents in selling annuities and insurance policies. Brokers act on behalf of clients, whereas agents represent insurance companies. Insurance brokers and agents earn commission income that is calculated as a percentage of the premium of policies sold. They also earn some fee income for risk management consulting and other value-added services, including insurance program administration.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.
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