A report has indicated that the global insurance brokers and agents market grew in excess of $100 billion in 2023 quarter alone, significantly adding to last year’s growth.
According to the report, the global insurance brokers & agents market grew from $415.14 billion in 2022 to $450 billion in 2023 at a compound annual growth rate (CAGR) of 8.4%.
Meanwhile, the insurance brokers & agents market is expected to grow to $597.89 billion in 2027 at a CAGR of 7.4%.
The report noted that nontraditional companies such as Google, Amazon, and Walmart are entering the insurance intermediary market to capitalize on their brand image, large capital, and customer base. Their primary focus is the distribution of health, property, and casualty insurance products.
In line with this trend, these companies are also entering into partnerships, joint ventures, and alliances with other established insurance carriers to offer insurance products and services to their customers.
For instance, in October 2021, SBI General collaborates with Google Pay, enabling users to buy SBI General’s health insurance on the Google Pay app in a quick and hassle-free way. These collaborations have enabled new entrants to acquire market knowledge and understand the industry dynamics.
Largest Region in the Global Insurance Brokers & Agents Market
North America was the largest region in the global insurance brokers & agents market. Western Europe was the second largest region insurance brokers & agents market. The regions covered in the insurance brokers & agents market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The report stated that insurance brokers and agents are investing in digital technologies to offer services online and thereby increase sales and boost margins. Digitalization is the process of converting information into digital formats.
This includes providing tools and resources to agents and brokers in digital formats through insurance portals, exchange websites, and digital distribution channels. These web-based portals and other digital channels are aimed at improving efficiency in business processing and reducing costs.
For instance, according to an insurance digital transformation survey, 39% of agents provide web-based portals to allow customers to request policy changes, check policy information and payments, report claims, obtain insurance ID cards, and get insurance certificates, and, 78% of them are increasingly using social media to acquire new customers on Facebook and 68% on LinkedIn.
Some of the major insurance companies offering insurance portals and digital distribution channels are Marsh & McLennan Cos., Inc., Willis Towers Watson P.L.C., and Aon P.L.C.
The insurance brokers and agents’ market consist of sales of insurance products by entities and individuals that act as intermediaries (i.e., agents or brokers) in selling annuities and insurance policies.
Insurance brokers and agents can be contracted with single or multiple insurance companies as they try to meet different client needs with available insurance products.
The Value of the Market
This market excludes the direct selling of insurance products by insurance companies. The value of the market is based on the fees or commissions paid to brokers by the insured, both commercial and personal. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
An Insurance broker is interested in selling, purchasing, or negotiating various financial products best suited to their individual client’s needs in exchange for compensation. An insurance agent sells, negotiates, or promotes financial products on behalf of their employer. They serve as the company’s sales representatives for its financial products. While an insurance agent works for the company they are employed by, an insurance broker represents you as the client.
The main types of Insurance brokers and agents are insurance agencies, insurance brokers, bancassurance, and other intermediaries. Insurance agencies refer to the agencies that act as a broker between the holder and the provider. The various insurances offered are life insurance, property and casualty insurance, and health and medical insurance. The different modes involved are online and offline modes. These are used by corporate and individual end-users.
Meanwhile, this report provides strategists, marketers and senior management with the critical information they need to assess the market.
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