Insurance Brokerage in Australia - Industry Market Research Report

Insurance Brokerage in Australia

The Insurance Brokerage industry has flourished on the back of rising insurance premiums. Severe natural disaster events have compelled insurers to spike premiums and incentivised consumers to avoid risks and seek out insurance brokers. Industry revenue is expected to grow at an annualised 5.4% over the five years through 2022-23 to $17.2 billion. This trend includes anticipated growth of 3.5% in the current year. The COVID-19 pandemic has led to more businesses relying on insurance brokers to purchase suitable insurance products amid a changing environment. Brokers are broadening their service offerings, delving into risk consulting, advisory and insurance support services to maintain their share of insurance distribution. Some brokers have focused on more profitable markets like commercial clients, where the risk coverage is more complicated and new-age risks like cyber security are more prevalent. This shift will continue as insurers' competition in the retail market intensifies.

The industry includes individuals and businesses that act primarily as agents or brokers in selling annuities and insurance policies. Industry brokers earn commission income, mostly as a percentage of the premium of insurance policies sold. The industry also includes providers earning fee income for risk management consulting and claim assessment and adjustment services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.