Companies in this industry act as agents to sell insurance policies and annuities underwritten by insurance carriers. Major companies include Arthur J Gallagher, Brown & Brown, and Marsh & McLennan (all based in the US), as well as Aon, Lloyd's, and Willis Towers Watson (all based in the UK).
Low interest rates, sluggish premium growth, and rising catastrophe losses are putting downward pressure on margins for insurance agencies and brokerages. Soft market conditions drive consolidation in the industry as companies look to maximize revenue growth.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major insurance products sold by agents and brokers include property and casualty (P/C), health and medical, and life. About 60% of industry revenue comes from commissions on property and casualty insurance, evenly split between commercial and personal lines. Commissions on medical insurance account for about 15% of industry revenue, and life and accident insurance commissions account for another 10%. Other types of insurance sold by agents and brokers can include annuities and title insurance.