Cover up: Increasing demand for general insurance has boosted industry revenue

The Insurance Brokerage industry has grown over the past five years, with industry revenue forecast to increase at an annualised 2.9% over the five years through 2018-19, to reach $2.3 billion. This includes an anticipated increase of 1.9% in the current year. Demand from general insurance has supported industry revenue growth over the period but slower demand from life insurance has limited this growth. Despite being a smaller product segment compared with general insurance, life insurance policies significantly affect industry revenue given the large up-front and trail commissions generated by insurance brokers...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
2.9%
Forecast Growth 19-24
Profit
Employment
6,552
Businesses
2,192

Industry Threats & Opportunities

  • Limited demand from life insurance has constrained industry revenue
  • The entrance of the Steadfast Group has increased enterprise numbers slightly over the past five years
  • Industry profitability is projected to fall over the next five years as competition intensifies
  • Industry Report - Industry Investment Chapter

    The Insurance Brokerage industry exhibits low capital intensity. For every dollar paid as wages, an estimated $0.04 is spent on capital investment. Industry operations tend to be highly labour-intensive. The need for highly skilled and qualified staff increases the industry's labour costs. Customer service and the significant amount of administrative and processing tasks account for most of the wage costs, further boosted by commissions paid to sales staff.In contrast, industry capital investment is low, as operators generally have little need for specialist equipment and depreciation is largely limited to communications and IT infrastructure. Smaller firms also tend to rent their equipment and premises, which reduces the amount of depreciation incurred. Des...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 households in the Insurance Brokerage industry impact industry performance..

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    What's in this report

    What is the Insurance Brokerage in New Zealand Industry?

    Industry operators are primarily insurance brokers or agents selling insurance policies. Companies in the industry may also provide other insurance services, such as insurance consulting, claims assessment and adjustment.

    Industry Products
  • Life insurance
  • Commercial general insurance
  • Private general insurance
  • Industry Activities
  • Actuarial services
  • Claim adjustment and assessment
  • 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 households
  • Natural disasters
  • Number of motor vehicles

  • Current Performance
  • Profitability
  • Operating landscape
  • Financial advice review
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Operating landscape
  • Proposed reforms
  • 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 in New Zealand
  • General Insurance in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Accounting Services in New Zealand
  • General Insurance in New Zealand

  • Products & Services
  • Commercial general insurance
  • Life insurance
  • Private general insurance
  • Other
  • Chart: Insurance Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial clients
  • Retail 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
  • Profit
  • Selling, general and administrative costs
  • Wages
  • Depreciation
  • Other
  • 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
    Aon New Zealand Group, Crombie Lockwood (NZ) Limited, AUB Group NZ Limited, Steadfast NZ Holdings Limited,
  • Table: Aon New Zealand Group - financial performance
  • Table: Crombie Lockwood (NZ) Limited - financial performance
  • Table: AUB Group NZ Limited - financial performance
  • Table: Steadfast NZ Holdings 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bancassurance
  • The selling of life and other insurance products by banks.
  • Distribution Network
  • A group of individual brokers forming partnerships and joining networks to share resources, while acting independently.
  • Gross Written Premium (Gwp)
  • The total premium written by an insurer before deductions for reinsurance and ceding commissions.
  • Premium
  • The amount of money that an individual or business must pay for an insurance policy.
  • Trail Commission
  • An annual fee paid by either the issuer (insurer) of the policy or the policyholder to the insurance broker for each year the policy is held.
  • What Our Customers Say

    Why buy this report?

    The Insurance Brokerage in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

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