Insurance Brokers & Agents Global Market Opportunities And Strategies To 2030, By Type, Mode, Insurance, End-User

This report describes and explains the insurance brokers and agents market and covers 2015 to 2020, termed the historic period, and 2020 to 2025 termed the forecast period, along with further forecasts for the period 2025-2030. The report evaluates the market across each region and for the major economies within each region.

To take advantage of the opportunities, the publisher recommends the insurance brokers & agents companies to focus on technologies to aid automation of insurance, focus on cybersecurity as top priority, focus on providing exemplary customer services, focus on cover for pandemics, adoption of automated reinsurance platforms, expand operations in emerging markets, set up automated reinsurance platforms, scale up through merger and acquisition activity, provide competitively priced offerings, increase visibility through business websites, increase partnerships with banks, leverage social media to maximize reach, focus on younger population, and increasing influx of alternative capital.

The insurance brokers and agents market reached a value of nearly $350.24 billion in 2020, having increased at a compound annual growth rate (CAGR) of 3.7% since 2015. The market is expected to grow from $350.24 billion in 2020 to $457.31 billion in 2025 at a rate of 5.5%. The market is then expected to grow at a CAGR of 5.1% from 2025 and reach $585.50 billion in 2030.

Growth in the historic period resulted from strong economic growth in emerging markets, increasing healthcare costs, and government led insurance reforms. Factors that hindered the growth of the insurance brokers and agents market during the historic period include self-insuring, low insurance penetration, falling life insurance penetration rates, and lack of awareness.

Going forward, increase in chronic diseases and disabilities, impact of covid-19, and growth of the middle-class in emerging markets will drive the growth. Factors that could hinder the growth of the insurance brokers and agents market in the future include direct sales by insurance providers, additional charges, and non-investment grade.

The insurance brokers and agents market is segmented by type into insurance agencies, insurance brokers, bancassurance, and other intermediaries. The insurance agencies market was the largest segment of the insurance brokers and agents market segmented by type, accounting for 39.4% of the total in 2020. Going forward, the bancassurance market is expected to be the fastest growing segment in the insurance brokers and agents market segmented by type, at a CAGR of 6.6% during 2020-2025.

The insurance brokers and agents market is also segmented by mode into online and offline. The offline market was the largest segment of the insurance brokers and agents market segmented by mode, accounting for 79.8% of the total in 2020. Going forward, the online segment is expected to be the fastest growing segment in the insurance brokers and agents market segmented by mode, at a CAGR of 9.3% during 2020-2025

The insurance brokers and agents market is also segmented by end-user into corporate and individual. The corporate market was the largest segment of the insurance brokers and agents market segmented by end-user, accounting for 57.8% of the total in 2020. Going forward, the individual segment is expected to be the fastest growing segment in the insurance brokers and agents market segmented by end-user, at a CAGR of 5.6% during 2020-2025.

The insurance brokers and agents market is also segmented by insurance into life insurance, property & casualty insurance and health & medical insurance. The life insurance market was the largest segment of the insurance brokers and agents market segmented by insurance, accounting for 55.3% of the total in 2020. Going forward, the health & medical insurance segment is expected to be the fastest growing segment in the insurance brokers and agents market segmented by insurance, at a CAGR of 9.2% during 2020-2025.

North America was the largest region in the insurance brokers and agents market, accounting for 43.5% of the total in 2020. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the insurance brokers and agents market will be Middle East and South America where growth will be at CAGRs of 10.7% and 9.7% respectively. These will be followed by Africa, and Eastern Europe, where the markets are expected to grow at CAGRs of 9.3% and 8.0% respectively.

The coronavirus pandemic that has swept the world is affecting every industry, in more ways than one. The insurance brokers and agents market is experiencing its fair share of the impact of COVID-19 on players in this market. People around the world have faced a severe shock with an increase in demand for life insurance. The virus can be widely spread through human contact, and governments worldwide are urging people to minimize this contact in efforts to contain the spread of the disease. Due to this, the insurance brokerage firms and agencies are trying to digitalize the process, to allow buying and disbursements of life insurance to continue as usual. The pandemic has taken a toll on new premiums on certain business lines, such as travel, events, and trade credit insurance, and losses from these lines of business may become significant.

The global insurance brokers and agents market is fragmented, with a large number of top players and small players. The top ten competitors in the market made up to 9.01% of the total market in 2020. Major players in the market include Marsh & McLennan Cos Inc, Aon PLC, Arthur J Gallagher & Co, Willis Towers Watson PLC, and Brown & Brown Inc.

The top opportunities in the insurance brokers and agents market segmented by type will arise in the insurance agencies segment, which will gain $40.4 billion of global annual sales by 2025. The top opportunities in segment by mode will arise in the offline segment, which will gain $67.6 billion of global annual sales by 2025. The top opportunities in segment by end-user will arise in the corporate segment, which will gain $61.1 billion of global annual sales by 2025. The top opportunities in segment by insurance will arise in the life insurance segment, which will gain $58.1 billion of global annual sales by 2025. The insurance brokers and agents market size will gain the most in the USA at $28.19 billion.

Market-trend-based strategies for the insurance brokers and agents industry include adoption of artificial intelligence digital insurance portal and distribution channels, strategic collaborations with baking organizations, mergers and acquisitions . Player-adopted strategies in the insurance brokers and agents industry include strategic acquisition of emerging and established companies and investments in development of digital technologies to strengthen their business and operational presence in insurance brokers and agents market across the globe.