Insurance Brokerage Market Expected to Reach $628.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Insurance Brokerage Market By Insurance Type (Life Insurance, Property And Casualty Insurance), By Brokerage Type (Retail, Wholesale): Global Opportunity Analysis And Industry Forecast, 2023-2032." The insurance brokerage market was valued at $259.7 billion in 2022, and is estimated to reach $628.3 billion by 2032, growing at a CAGR of 9.3% from 2023 to 2032.

In recent years, the insurance brokerage industry has experienced a steady growth in response to rise in demand for online brokerage services and cashless transactions. The adoption of digital tools and platforms is revolutionizing the insurance brokerage market. Online portals, mobile apps, and digital communication channels enhance customer experiences, streamline policy management, and enable remote interactions.

Moreover, the COVID-19 pandemic accelerated the acceptance of remote work and virtual client interactions. Insurance brokerage providers are integrating virtual consultations, e-signatures, and video conferencing to maintain client engagement. In addition, the globalization of businesses and increasing cross-border operations create demand for insurance coverage that spans different jurisdictions. Insurance brokerage providers offer expertise in navigating international insurance requirements.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in April 2023, The Alliance Insurance Brokers, one of the India’s top insurance service providers, joined hands with India’s ridesharing company, Ola, to provide insurance security to its national network of Ola drivers. Through this initiative, Alliance Insurance Brokers is providing insurance protection to the drivers of Ola, with almost 2 lakh Ola drivers insured on a daily basis while they are on duty.

Moreover, in September 2022, National Skill Development Corporation International (NSDCI), and Acuvisor Insurance Brokers (India) announced collaboration to skill India’s youth by training them to become Point of Sale Persons (PoSP) through Acuvisor’s mobile application. With the help of this partnership, Acuvisor and NSDCI are expected to work towards creating a skill ecosystem that will benefit one lakh youth, across the country. NSDCI will leverage the application to train, certify, and effectively employ India’s youth in tier-II and tier-III cities, as well as rural geographies.

On the basis of brokerage type, the retail segment attained the highest insurance brokerage market size in 2022, as retail brokers and agents are investing in digital technologies to provide services online, thus, boosting revenues and margins in the process. Information is transformed into digital formats through the process of digitalization. This includes offering digitally formatted tools and materials to agents and brokers via insurance portals, exchange websites, and digital distribution methods. Further, retail brokerage also helps insurance companies to collect insurance premiums on their behalf and renew or revising existing policies for clients as well as also offer guidance on claims handling.

On the basis of region, Asia-Pacific is expected to grow with fastest CAGR during the forecast period, as various governments across Asia-Pacific are providing favorable government policies for new foreign insurance companies to settle their market in the country. Further, insurance brokerage companies across Asia-Pacific are providing numerous benefits, which include helping insurance companies to understand their clients’ requirement and serving companies to deliver risk management and other insurance consulting services, thus positively impacting the insurance brokerage market growth.

The pandemic-induced economic downturn led to reduced business activities, declining revenues, and heightened financial uncertainties for many industries. This directly affected insurance brokerage firms, as businesses scaled back operations, resulting in decreased demand for various insurance products. Furthermore, the pandemic heightened consumer uncertainty, leading to delayed purchasing decisions and hesitancy in committing to insurance coverage. Individuals and businesses were cautious about additional financial commitments due to the economic uncertainties, resulting in longer sales cycles and potentially reduced revenues for brokerages. Therefore, the COVID-19 pandemic had a negative impact on the insurance brokerage market.

Key Findings of the Study

• By insurance, the property and casualty insurance segment led the insurance brokerage market share in terms of revenue in 2022.
• By brokerage type, the retail segment led the insurance brokerage market trends in terms of revenue in 2022.
• By region, North America generated the highest revenue in 2022.

The key players profiled in the insurance brokerage market analysis are Acrisure, LLC, Aon plc, Brown & Brown, Inc, Gallagher, HUB International Limited, Lockton companies, Marsh & McLennan Companies Inc., Truist Insurance Holdings, USI Insurance Services L.L.C, and Willis Towers Watson. These players have adopted various strategies to increase their market penetration and strengthen their position in the insurance brokerage industry.