Insurance Brokers Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Insurance Brokers Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • May 2021 •
  • 175 pages •
  • Report ID: 6071826 •
  • Format: PDF
Major players in the insurance brokers market are Aon Plc; Arthur J. Gallagher & Co.; BB&T Corp.; Brown & Brown Insurance Inc.; HUB International Ltd.; Marsh & McLennan Companies Inc.; NFP Corp.; Willis Towers Watson Plc; Wells Fargo Insurance Services; and Meadowbrook Insurance Group.

The global insurance brokers market is expected to grow from $88.16 billion in 2020 to $92.2 billion in 2021 at a compound annual growth rate (CAGR) of 4.6%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $113.99 billion in 2025 at a CAGR of 5.4%.

The insurance brokers market consists of sales of insurance policies by entities (organizations, sole traders, and partnerships) that act as intermediaries (i.e., agents or brokers) in selling annuities and insurance policies. Only goods and services traded between entities or sold to end consumers are included.

The integration of AI in the insurance sector is a key trend gaining popularity in the insurance brokers market.The AI and human creativity combined power integrate the Intelligent Broker, an automation program for the insurance industry.

Brokers will be able to resolve complicated obstacles, produce innovative products and services, and join or build new markets.In addition to this, AI in the insurance industry will improve customer service and prevent customers from fraud.

In 2018, 79% of insurance managers believe that AI will revolutionize the way clients communicate with them and 59% of insurance agents are searching for ways to use AI to speed up the launch of new products and services.

The insurance brokers market covered in this report is segmented by type into life insurance; general insurance; health insurance; others, by mode into offline; online, by end user into corporate; individual.

In March 2020, Aon, a UK-based global professional services firm that is engaged in selling a wide range of financial risk-mitigation products, including pension administration, insurance, and health-insurance plans acquired Willis Towers Watson for $30 billion.The acquisition provided Aon to serve in areas including intellectual property, cyber, and climate risk to the company clients.

Moreover, the deal will accelerate the innovations and strengthen the company’s position in the insurance industry with more relevant solutions for clients. Willis Towers Watson is a British-American company engaged in providing risk management, insurance brokerage, and advisory services.

The increasing demand for insurance policies is expected to fuel the growth of the insurance brokers market over the coming years.The demand for insurance policies has risen due to the availability of security services and customized financial services to clients.

According to the Insurance Regulatory and Development Authority (IRDAI) of India, life insurers provided 286.48 lakh new individual policies during 2018-19, in which LIC provided 214.04 lakh policies and 72.44 lakh policies were issued by private life insurers. Therefore, the increasing demand for insurance policies drives the growth of the insurance brokerage market.

The impact of COVID 19 is predicted to limit the growth of the insurance brokers market over the forecast period.COVID-19 pandemic has taken the lives of millions of people, affected supply chains & business sectors, and disrupted economies worldwide.

Coronavirus outbreak has several impacts on the insurance sector, from employee and business continuity concerns to customer care considerations to the financial outlook.For instance, the Indian insurance industry’s productivity has been hit by 30% in March 2020.

The pandemic has pushed the insurance industry to heavily depend on digitalization for selling new policies, setting up claims, and to make other transactions. Therefore, the impact of COVID 19 restraints the growth of the insurance brokers market.