Insurance Brokers Market Report 2022
Insurance Brokers Market Report 2022
The insurance brokers market consists of sales of insurance policies by entities (organizations, sole traders, and partnerships) that act as intermediaries (i.e., agents or brokers) in selling annuities and insurance policies. Only goods and services traded between entities or sold to end consumers are included.
The main types of insurance brokers are life insurance, general insurance, health insurance, others. Life insurance in the insurance brokers market refers to the contract between the insurer and the insurance policyholder that promises to pay a total sum of money upon the death of an insured person. The services are offered in various modes such as offline, and online mode. These are used by corporate, and individuals.
The global insurance brokers market size is expected to grow from $90.52 billion in 2021 to $97.46 billion in 2022 at a compound annual growth rate (CAGR) of 7.7%. The global insurance broker market size is expected to grow to $122.69 billion in 2026 at a CAGR of 5.9%.
The increasing demand for insurance policies is expected to fuel the growth of the insurance brokers market over the coming years. The demand for insurance policies has risen due to the availability of security services and customized financial services to clients. According to the Insurance Regulatory and Development Authority (IRDAI) of India, life insurers provided 286.48 lakh new individual policies in 2019, in which LIC provided 214.04 lakh policies and 72.44 lakh policies were issued by private life insurers. Therefore, the increasing demand for insurance policies drives the growth of the insurance brokerage market.
The impact of COVID-19 is predicted to limit the growth of the insurance brokers market over the forecast period. COVID-19 pandemic has taken the lives of millions of people, affected supply chains & business sectors, and disrupted economies worldwide. Coronavirus outbreak has several impacts on the insurance sector, from employee and business continuity concerns to customer care considerations to the financial outlook. For instance, the Indian insurance industry's productivity has been hit by 30% in March 2020. The pandemic has pushed the insurance industry to heavily depend on digitalization for selling new policies, setting up claims, and making other transactions. Therefore, the impact of COVID-19 restraints the growth of the insurance brokers market.
The integration of AI in the insurance sector is a key trend gaining popularity in the insurance brokers market. The AI and human creativity combined power integrate the Intelligent Broker, an automation program for the insurance industry. Brokers will be able to resolve complicated obstacles, produce innovative products and services, and join or build new markets. In addition to this, AI in the insurance industry will improve customer service and prevent customers from fraud. In2021, 60 percent of the insurance companies are targeting AI to be used in decision making and to reduce manual input which has doubled in the last two years.
In March 2020, Aon, a UK-based global professional services firm that is engaged in selling a wide range of financial risk-mitigation products, including pension administration, insurance, and health-insurance plans acquired Willis Towers Watson for $30 billion. The acquisition provided Aon to serve in areas including intellectual property, cyber, and climate risk to the company clients. Moreover, the deal will accelerate the innovations and strengthen the company’s position in the insurance industry with more relevant solutions for clients. Willis Towers Watson is a British-American company engaged in providing risk management, insurance brokerage, and advisory services.
Major players in the market are Aon Plc, Arthur J. Gallagher & Co, BB&T Corp., Brown & Brown Insurance Inc., HUB International Ltd., Marsh & McLennan Companies Inc., NFP Corp., Willis Towers Watson Plc, Wells Fargo Insurance Services, and Meadowbrook Insurance Group.
North America was the largest region in the insurance brokers market in 2021. Western Europe was the second largest market in the global insurance brokers market. The regions covered in the global insurance brokers market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the insurance brokers market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The global insurance brokers market is segmented -
1) By Type: Life Insurance, General Insurance, Health Insurance, Others
2) By Mode: Offline, Online3) By End-User: Corporate, Individual