The Insurance Brokers and Agencies industry experienced subdued growth over the five years to 2016 due to tempered disposable income levels and delayed purchases of homes and consumer durables. The industry has also faced increased competition from underwriters that provide insurance services directly to clients, threatening revenue growth. Over the five years to 2021, improvements in car sales, homeownership rates and employment levels are all anticipated to drive revenue. In addition, the unemployment rate is expected to decline, increasing demand for property and casualty insurance. However, the industry will continue to face pricing pressures from external competition, such as online carriers.
This industry includes individuals and businesses that primarily act as agents or brokers in selling insurance policies and annuities. Industry participants earn commission income, mostly as a percentage of the premium of insurance policies sold. They also earn some fee income for providing risk management consulting and other value-added services. This industry is only composed of independent brokers and agencies.
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.