Insurance Agencies Global Market Report 2022

Insurance Agencies Global Market Report 2022

  • May 2022 •
  • 175 pages •
  • Report ID: 6277930 •
  • Format: PDF
Major players in the market are McGriff Insurance Services, Marsh & McLennan Agency LLC, Aon PLC, Brown & Brown Insurance Inc., HUB International Ltd., and USI Insurance Services.

The global insurance agencies market is expected to grow from $116.43 billion in 2021 to $123.92 billion in 2022 at a compound annual growth rate (CAGR) of 6.4%. The market is expected to grow to $148.99 billion in 2026 at a compound annual growth rate (CAGR) of 4.7%.

The insurance agencies market consists of sales of insurance policies by entities (organizations, sole traders, and partnerships) that act as agents in selling annuities and insurance policies. The insurance agencies are the agencies that are helpful for the insurance seekers to take insurance.

The main types of insurance agencies are life insurance, property and casualty insurance, health and medical insurance, other insurance.Life insurance refers to the contract between the insurer and the insurance policyholder that promises to pay a total sum of money upon the death of an insured person.

The services are provided in various modes such as online, offline. These are used by corporates and individuals.

North America was the largest region in the insurance agencies accounting for in 2021.Western Europe was the second largest region in insurance agencies market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Increased awareness about the benefits of insurance coverage is expected to drive the insurance agency’s market.The pandemic has alerted the public and made them aware of the uncertainty, which led them towards opting for insurance to protect their and their family’s lives.

For instance, according to the Max Bupa survey on the difference of mindset of people before and after the COVID-19 onset, during pre-COVID times the percentage of buyers and planners for comprehensive plans was 32% and 41%, respectively.The demand for insurance plans has seen a significant increase over the last few months, with the percentage of buyers and people intending to buy rising to 55% and 60%.

The insurance agencies help the people in obtaining the best insurance policy as per their needs and budget. Hence, a higher awareness rate among the public on the benefits of insurance coverage aids in the growth of the insurance agencies market.

Change in consumers’ behavior of approaching the insurance providers directly for availing insurance policies instead of insurance agencies is expected to hinder the market growth.Customers feel empowered to forego agents and brokers as most of the insurance providers are providing online services.

According to Capgemini and Efma’s World Insurance Report 2020, people of all ages are now adopting a millennial mentality where they trust their research through a variety of channels, primarily digital channels to gather information and directly purchase insurance products online.Moreover, online term plans offered by life insurance companies are comparatively 20-30% cheaper than offline ones.

Thus, changing customer approach towards insurance agencies eliminates the involvement of agencies and brokers in the process of insurance purchase, which in turn is restricting the growth of the insurance agencies market.

Introduction to technology-enabled services and platforms is a leading trend in the insurance agencies market.Insurance and technology companies are assisting insurance agencies by developing technology-enabled services and platforms for enhancing smooth customer experience and versatility.

For instance, in 2019, Nationwide and Bold Penguin partnered to launch the commercial digital storefront, to deliver an easy-to-use single-entry software that allows agents to reach the best markets in record time, and in July 2020 the companies are now validating an independent agent-facing commercial insurance quoting and sales platform. Furthermore, in April 2020, Aureus Analytics, an artificial intelligence technology company, partnered with HawkSoft to help independent insurance agents understand better how well their agency serves the insured.

In March 2020, USI Insurance Services, a USA-based consulting and insurance brokerage firm with expertise in risk management, employee benefit, and retirement plan consulting has acquired Full Service Insurance Agency, Inc. for an undisclosed amount. This acquisition is expected to expand USI Insurance Services’ commercial, employee benefit, and personal risk expertise into Tennessee. Full-Service Insurance, Inc., is a US-based insurance agency, concentrating on commercial insurance, employee benefits, and risk solutions for businesses and individuals.

The countries covered in the insurance agencies market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.