Safe as houses: Demand from general insurance has supported industry revenue growth

Revenue for the Insurance Brokerage industry has grown over the past five years, despite declining in some years. Over the five years through 2017-18, industry revenue is expected to rise at an annualised 2.6%. Demand from general insurance has supported industry revenue growth over this period. However, this has been constrained by slower demand from life insurance. Despite being a smaller product segment compared with general insurance, life insurance policies have a significant effect on industry revenue given the large up-front and trail commissions generated by insurance brokers. Strong demand from general insurance over the current year is expected to contribute to forecast growth of 4.8%, with revenue reaching $2.2 billion in 2017-18...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
2.6%
Forecast Growth 18-23
Profit
Employment
6,383
Businesses
2,188

Industry Report - Industry SWOT Analysis Chapter

The Insurance Brokerage industry is currently in the mature phase of its life cycle. Industry value added, which measures the industry's contribution to the economy, is forecast to grow at an annualised 1.2% over the 10 years through 2022-23. This represents an underperformance of overall GDP, which is projected to rise at an annualised 2.8% over the same period. This indicates that the industry's contribution to the economy is shrinking.Growth in enterprise numbers has been slowing as the Life Insurance industry has stagnated and large networks have been acquiring or joining forces with smaller firms to grow their market shares. This indicates that the industry is in the mature phase of its life cycle. Pro...purchase to read more.

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 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
  • Health Insurance
  • Commercial general products
  • Private general products
  • Other products and services
  • 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 products
  • Life Insurance
  • Private general products
  • Other products and services
  • Health Insurance
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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.
  • 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?

    IBISWorld’s Insurance Brokerage in New Zealand 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.

    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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