Insurance Brokers and Agents Market Size - By Insurance Type (Life Insurance, Property & Casualt Insurance), By Brokerage Type (Retail, Wholesale), By End user (Individual, Corporate) & Forecast, 2024 - 2032

Insurance Brokers and Agents Market Size - By Insurance Type (Life Insurance, Property & Casualt Insurance), By Brokerage Type (Retail, Wholesale), By End user (Individual, Corporate) & Forecast, 2024 - 2032

Insurance Brokers and Agents Market Size

Insurance Brokers and Agents Market was valued at USD 240.5 billion in 2023 and is projected to grow at a CAGR of over 9% between 2024 and 2032, attributed to the growing imperative towards digital customer engagement, such as online platforms, mobile apps, and chatbots. The advent of digital tools is offering convenient ways to insurance brokers and agents to interact with clients, purchase policies, and access information. With the ongoing technological integration, brokers and agents are further leveraging AI, machine learning, and data analytics to enhance customer experiences, streamline operations, and improve risk assessment, adding to the market growth.

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The surging preference for tailored insurance solutions to cater to individual needs will drive the market growth. Brokers and agents are increasingly providing personalized coverage options, on account of the rising trend of data analytics and customer-centric approaches. However, the complexity associated with the constantly evolving regulations and compliance standards may add operational challenges for brokers and agents.

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This sector operates within a highly regulated environment where laws and guidelines can frequently change, often varying by region or country. Brokers and agents must continuously update their practices and policies to comply with these new regulations, which can be resource-intensive and require ongoing training. Failure to comply can lead to legal repercussions, financial penalties, and damage to reputation. Moreover, staying up-to-date with these changes demands a deep understanding of both local and global insurance regulations, adding complexity to their operations.

Insurance Brokers and Agents Market Trends

The rising incidences of cyber threats and the subsequently growing focus on cyber insurance will play a prominent role for the industry expansion. As per the latest Cyber Crime Statistics by AAG IT Services, around 212,485 cyber crimes were reported in India during the first 2 months of 2022. To that end, brokers and agents are increasingly educating clients about cyber risks and offering specialized policies for protecting against data breaches and cyberattacks.

Insurance Brokers and Agents Market Analysis

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The property & casualt insurance segment held a major market share and is expected to grow significantly. The surging frequency of severe natural disasters due to climate change has prompted the higher demand for insurance coverage against events, such as hurricanes, wildfires, and floods. The increasing rate of urbanization worldwide and the presence of denser populations is further augmenting the need for insurance coverage against property damage and accidents. Changing demographics, lifestyle choices and income levels are other factors driving the segment growth.

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The individual segment held captured 58% market share in 2023. This growth can be attributed to the rising demand for tailored insurance solutions to match unique requirements for ensuring adequate coverage while considering budget constraints. Brokers and agents provide personalized service and take time for understanding individual needs and circumstances. The ease of building long-term relationships will also play a key role in the market expansion.

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North America insurance brokers and agents market size crossed USD 76.4 billion in 2023, driven by the shifting inclination to digitization and technology adoption in the region. The emergence of innovative insurance startups and the scaling investments have made way for agile and customer-friendly approaches. For instance, Insurtech startup Functional Finance, in August 2023, secured $8 million for further expanding the operational efficiency for the insurance domain. The growing interest in sustainable and ethical business practices is another major driver impacting the regional market growth.

Insurance Brokers and Agents Market Share

Marsh & McLennan Companies, Inc. holds the largest share in insurance brokers and agents industry, the company offers a vast array of risk management services, insurance brokerage, and advisory services, catering to a diverse clientele that includes large corporations, SMEs, and individual clients. Marsh & McLennan's strong reputation for expertise and reliability, combined with its strategic acquisitions and partnerships, has bolstered its market position.

Insurance Brokers and Agents Market Companies

Major players operating in the insurance brokers and agents industry are

• Acrisure LLC
• Aon plc
• Arthur J. Gallagher & Co.
• Brown & Brown, Inc.
• Hub International Limited
• Lockton Companies
• Marsh & McLennan Companies, Inc.
• Willis Towers Watson

Insurance brokers and agents Industry News

• In December 2023, Aon disclosed plans to purchase privately held NFP in a $13.4 billion deal to tap into the fast-growing middle-market of wealth management, insurance brokerage, and retirement plan advisory.
   
• In September 2023, Lockton inked a long-term strategic deal with Spanish independent insurance as well as reinsurance broker Jhasa to drive commercial insurance as well as people solutions growth across Spain.

This insurance brokers and agents market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Insurance Type

• Life insurance
• Property & Casualt Insurance
  • Auto Insurance
  • Health Insurance
  • Home Insurance
  • Commercial insurance
  • Cyber liability
  • Others

Market, By Brokerage Type

• Retail
• Wholesale

Market, By End User

• Individual
• Corporate

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia 

Frequently Asked Questions (FAQ)

What is the size of insurance brokers and agents market?

The market valuation of the insurance brokers and agents was reached USD 240.5 billion in 2023 and is anticipated to register over 9% CAGR between 2024 and 2032, attributed to the growing imperative towards digital customer engagement, such as online platforms, mobile apps, and chatbots may significantly influence the industry growth.

Why is the demand for insurance brokers and agents gaining traction among individuals?

The individual segment held around 58% market share in 2022 and is poised for significant growth attributed to the rising demand for tailored insurance solutions to match unique requirements for ensuring adequate coverage while considering budget constraints.

Why is the North America region growing demand for insurance brokers and agents?

North America insurance brokers and agents market size exceeded USD 76.4 billion in 2023 and is poised for significant growth, driven by the shifting inclination to digitization and technology adoption in the region.

Who are the leading players in insurance brokers and agents market?

Acrisure LLC, Aon plc, Arthur J. Gallagher & Co., Brown & Brown, Inc., Hub International Limited, Lockton Companies, Marsh & McLennan Companies, Inc., and Willis Towers Watson.