Overview

Under pressure: Regulatory reforms and greater competition are slowing industry revenue growth

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.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Despite solid revenue growth, brokers have faced intensifying competition from insurers and banks
  • Online aggregators pose a threat to industry firms and raise competition for private clients
  • The industry is expected to benefit from further outsourcing of insurance-related services

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    Industry Analysis & Industry Trends

    Rising insurance premiums and a strong consumer preference for purchasing insurance policies from brokers have helped drive the Insurance Brokerage industry's growth over the past five years. Brokers provide advice and expertise to both commercial clients and private individuals, help explain the insurance process and match clients to the most suitable product. Additionally, brokers benefit insurers as they provide an additional distribution channel and act as a contract sales team. Strong policy sales have led to increased commissions for the industry, with revenue forecast to rise at an annualised 2.0% over the five years through 2016-17. This includes projected growth of 1.3% in the current year, to $12.5 billion...

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    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 $0.08 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. Investment in labour has increased in dollar terms, as clients have demanded additional services. This has led to a growing number of insurance agents and brokers offering comprehensive financial planning services, such as investment, retirement and estate planning.

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    Additional Insights for the Insurance Brokerage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insurance Brokerage Industry 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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    New Zealand Special Report

    Industry Products

    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. They also earn fee income for risk management consulting and claim assessment and adjustment services.

    Industry Products
    Commercial general products
    Private general products
    Life insurance
    Health insurance
    Other products and services
    Industry Activities
    Actuarial services
    Claim assessment and adjustment
    Operating insurance agencies
    Insurance broking
    Insurance consulting

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Number of motor vehicles
  • Real household disposable income
  • Number of households
  • Natural disasters

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Insurance Brokerage Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Life Insurance
  • General Insurance
  • Consumers

  • Key Selling Industries
  • General Insurance
  • Life Insurance

  • Products & Services
  • Life insurance
  • Commercial general products
  • Private general products
  • Other products and services
  • Health insurance
  • 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
    Competitive Landscape
    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
    Major Companies
    Steadfast Group LimitedAUB Group LimitedIBNA Limited
  • Table: Steadfast Group Limited - financial performance
  • Table: AUB Group Limited - financial performance
  • Table: IBNA Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Insurance Brokerage Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Market Hardening
  • A market where insurance premium prices are increasing. Insurance markets harden when the demand for insurance overshoots 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.
  • Trail Commission
  • A type of commission paid annually by the insurer to the adviser or broker in the years after setting up the policy.
  • Why buy this report?

    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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