Global Insurance Brokers & Agencies - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

The Global Insurance Brokers and Agents industry has displayed remarkable resilience and adaptability over the past few years, navigating a volatile macroeconomic landscape shaped by factors such as natural disasters, economic fluctuations and regulatory changes. Brokers and agents, who earn commissions tied to insurance policy premiums, play an essential role in helping consumers and businesses manage risk. The increased incidence of environmental hazards such as floods and wildfires has boosted demand for property and casualty insurance, subsequently benefiting the providers. On top of this, growing global per capita income, especially in emerging markets, has resulted in heightened spending on insurance services to safeguard new wealth.

Trends and Insights

• Environmental and economic conditions play a significant role in the insurance industry's dynamics.
• Increased natural disasters and higher global incomes have led to higher demand for insurance, benefiting brokers and agents alike. P&C insurance is essential for safeguarding valuable assets.
• From cars to homes, these policies cover losses from accidents, damage and natural disasters, providing crucial protection for consumers’ significant investments. The United States leads the market for global insurance brokers and agencies, capturing nearly 40.0% of it.
• Mandatory health and property insurance requirements significantly boost demand for insurance services in the country. Insurance companies generate less revenue in countries with strong government-sponsored programs.
• These programs often provide individuals with health insurance, lowering the need for brokers and agents.

Industry Overview

Industry revenue has declined at a CAGR of 1.3 % over the past five years, to reach an estimated $547.0bn in 2024.

Trends and Insights

Environmental and macroeconomic factors influence demand for insurance brokers and agencies Typically acting in the interest of the buyers, brokers can augment their traditional brokerage offerings with various fee-based risk advisory services. On the other hand, agents represent an outsourced sales function. Both brokers and agents earn commissions from insurance sales.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• Improving economic conditions will boost demand for insurance services
• Despite challenges in many countries pertaining to recessionary fears and high inflation, the global economy is expected to expand during the outlook period, benefiting both consumers and businesses.