Self-insured: The industry is being increasingly bypassed, limiting revenue growth

The Insurance Brokerage industry has grown its revenue slightly over the past five years, due to rising insurance premiums and consumer preference for purchasing insurance policies from brokers. Brokers provide advice and expertise to private and commercial clients, and match them to the most suitable policies. Additionally, brokers benefit insurers, as they offer an additional distribution channel and act as a contract sales team. However, brokers have faced intensifying competition from insurers, banks and insurtech start-ups over the past five years. Insurers are increasingly investing in online sales platforms and new sales channels, such as bancassurance, to minimise expenses and reduce reliance on agents and brokers...read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 15-20
0.3%
Forecast Growth 20-25
Profit
Employment
10,610
Businesses
5,305

Industry Threats & Opportunities

  • Brokers have faced intensifying competition from insurers, banks and insurtech start-ups
  • Online comparison sites pose a threat to industry firms and raise competition for private clients
  • The industry is projected to benefit from further outsourcing of insurance-related services
  • Industry Report - Industry Investment Chapter

    The Insurance Brokerage industry is characterised by a low level of capital intensity. For every dollar paid as wages, an estimated $0.07 is spent on capital investment, which demonstrates the labour-intensive nature of the industry. Industry operators rely on labour to provide sales, customer service, and administration and processing of insurance policies brokered. Labour costs are also bolstered by commission payments to sales staff, meaning wages are likely to rise with any increases in industry revenue.Despite the high reliance on labour for most activities, the industry is subject to a growing need for technological development. Technology is increasingly being used by companies to reach new clients and attract sales. Rob...purchase to read more.

    Additional Insights for the Insurance Brokerage Industry

    IBISWorld has determined the most important Key Success Factors for the Insurance Brokerage are:

  • Having a good reputation
  • Having a loyal customer base
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Number of motor vehicles in the Insurance Brokerage industry impact industry performance..

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    What's in this report

    What is the Insurance Brokerage Industry?

    The industry includes individuals and businesses that act primarily as agents or brokers in selling annuities and insurance policies. Industry participants earn commission income, mostly as a percentage of the premium of insurance policies sold. The industry also includes operators earning fee income for risk management consulting and claim assessment and adjustment services.

    Industry Products
  • Commercial general products
  • Private general products
  • Life insurance
  • Health insurance and other services
  • Industry Activities
  • Actuarial services
  • Claim assessment and adjustment
  • Operating insurance agencies
  • Insurance broking
  • Insurance consulting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Number of motor vehicles
  • Real household disposable income
  • Number of households
  • Cost of natural disasters

  • Current Performance
  • Trading landscape
  • Profitability and structure
  • Competition
  • Commission structures
  • Financial Services Royal Commission (FSRC)
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading environment
  • Natural disasters
  • Insurtech
  • Growth opportunities
  • Table: Insurance Brokerage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insurance Brokerage Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance
  • General Insurance
  • Consumers

  • Key Selling Industries
  • General Insurance
  • Professional Services

  • Products & Services
  • Life insurance
  • Commercial general products
  • Private general products
  • Health insurance and other services
  • Chart: Insurance Brokerage Industry Products and Services Segmentation

  • Demand Determinants
  • Economic conditions
  • Distribution channels
  • Prices
  • Demographics

  • Major Markets
  • Commercial clients
  • Private clients
  • Chart: Major Market Segmentation for the Insurance Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Insurance Brokerage

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insurance Brokerage Industry

  • Industry Globalization
    Steadfast Group Limited, AUB Group Limited, IBNA Limited,
  • Table: Steadfast Group Limited - financial performance
  • Table: AUB Group Limited - financial performance
  • Table: IBNA Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Insurance Brokerage 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 Brokerage Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bancassurance
  • The selling of insurance products by a bank.
  • Broker
  • A party that connects buyers with sellers to facilitate the exchange of goods or services.
  • Distribution Network
  • While they act independently, individual brokers can form partnerships or alliances and can join networks to share resources and benefit from leads provided by the network.
  • Gross Written Premium (Gwp)
  • The total premium written by an insurer before deductions for reinsurance and ceding commissions.
  • Insurtech
  • Insurtech, also known as insurance technology, is part of fintech. Insurtech is a broad category of changing technologies used in the insurance industry.
  • Market Hardening
  • A market where insurance premium prices are increasing. Insurance markets harden when the demand for insurance exceeds supply. The supply of insurance depends on an insurer's capital position.
  • Premium
  • An amount of money paid to acquire a certain level of insurance cover for a specified period of time.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Insurance Brokerage market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Brokerage:
    • 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 Brokerage 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 Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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