Global Insurance Brokerage Market to Generate $570,765.4 Million by 2031 Due to the Increasing Awareness of the Need of Insurance Policies

Insurance brokerage refers to the business of disseminating information about various types of insurance policies to the customers and meeting their insurance related demands. An insurance broker is an important entity in this business who advises, suggests, and sells insurance policies to the customers while at the same time acting as a mediator between policyholders and insurers. Along with information about insurance policies, insurance brokers also offer technical and expert information regarding the minute details of the insurance policy.

Forecast Analysis:

Over the years, there has been a substantial increase in awareness regarding the importance of insurance policies which is expected to be the primary growth driver of the global insurance brokerage market during the forecast period. Along with this, advancements in digital technology for building web-based insurance portals are predicted to boost the insurance brokerage market during the forecast years. Moreover, various government initiatives to expand the insurance network are expected to offer numerous growth opportunities to the market players during the forecast years. However, according to the market analysts, direct purchases of insurance policies by clients may act as a restraint in the full-fledged growth of the insurance brokerage market during the 2022 to 2031 timeframe.

Regionally, the insurance brokerage market in the North America region is expected to be the most dominant during the forecast period. The presence of the most developed public healthcare systems is predicted to be the main contributing factor to the growth of the market in this region.

As per a report by Research Dive, the insurance brokerage market is expected to generate a revenue of $570,765.4 million by 2031, thereby growing at a CAGR of 7.0% during the 2022 to 2031 timeframe. Some of the prominent market players include Marsh & McLennan, Hub International, Acrisure LLC, AON PLC, Lockton, Alliant Insurance Services, Willis Towers Watson PLC, Truist Insurance Holdings, Brown & Brown, and Arthur J. Gallagher.

COVID-19 Impact on the Market:

The COVID-19 pandemic and the subsequent lockdowns have had a significant impact on various businesses and markets worldwide. The insurance brokerage market also witnessed a negative impact due to the pandemic. During the pandemic, several insurance brokerage companies had to shut down due to decrease in demand for new insurance policies. Moreover, shareholders of different insurance companies withdrew their contributions from their insurance policies which further affected the growth rate of the market.

Significant Market Developments:

The key players of the market are adopting various business strategies such as partnerships, mergers & acquisitions, and product launches to gain a leading position in the market, thus helping the insurance brokerage market to flourish. For instance:

• In November 2022, PCF Insurance Services (PCF), a U.S.-based insurance company, announced the acquisition of Voluntary Benefits at Work, a health insurance company. This acquisition is predicted to help PCF Insurance Services to expand their operations globally in the upcoming years.
   
• In January 2022, Mahindra Insurance Brokers, a leading financial services company, announced that it was partnering with Tata 1mg, a healthcare company. Under this partnership agreement, Mahindra Insurance Brokers will provide healthcare solutions to corporate employees and their immediate families. This partnership is anticipated to cater to the demands of the medical insurance sector in a comprehensive manner.
   
• In October 2021, Arthur J. Gallagher & Co., the world’s leading insurance company, announced the acquisition of Edelweiss Insurance Brokers Limited, another renowned insurance firm. This acquisition is predicted to help the acquiring company i.e., Arthur J. Gallagher & Co., to further consolidate its lead in the market.