Insurance brokerage: Key market research findings
- Upsurge in industrialization and population to influence the market growth
- Vendors are making use of social media to expand their clientele
Technavio’s market research analysts estimate the global insurance brokerage market to grow at a CAGR of over 4% between 2016 and 2020. The insurance brokerage market is primarily driven by the change in demographics and economy recovery across the globe. The pace of growth in the insurance industry is heavily influenced by the growing population, the expansion of industrialization, the surge in global commercial and entrepreneurial operations, rise in consumer awareness regarding insurance products, and increasing disposable incomes across the globe. In 2015, the global insurance brokerage market was dominated by North America with a 53% share of the overall market value. The increasing public awareness about insurance protection requirements and greater financial advisory requirements are some of the factors that will propel the market in this region during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The adoption of data analytics and the incorporation of business intelligence (BI) is an upcoming trend in the market. Many top insurance brokerage companies are increasingly focusing on expense management in an attempt to increase their profit margins. Some top vendors are also focusing on mergers and acquisitions and joint ventures to reduce the costs of smooth integration of data mining and organizational resources,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research.
Social media platforms offer insurance brokerage firms numerous benefits such as a larger customer reach and effective disclosure of information, which improves the transparency in the system. This is stimulating an increase in the number of insurance brokers who are tapping into social media technologies in a bid to generate higher revenue and educate customers about various policies. Furthermore, internet-based strategies make it possible to overcome geographical limitations faced by agents while providing services to the clients. For instance, focus groups or discussion forums are being created for customers to interact with each other and with company experts on issues arising from miscommunications and on regulations. Such channels can also be used to launch media campaigns such as education and new product launches.
The key vendors in the global insurance brokerage market include Aon, Arthur J. Gallagher, Marsh & McLennan, and Willis. In the current market scenario, the insurance brokers have remodeled themselves as advisory service agents. They now provide risk management and insurance consultancy services, instead of acting as a liaison in the insurance policy process. The emergence and increased usage of the Internet have lowered operational costs of firms in the insurance brokerage industry by providing e-solutions and services. The advent of automation in insurance processes has made seamless transactions possible and more convenient. As technology continues to evolve, businesses are expected to adopt these technologies and align with them to remain competitive.
A more detailed analysis is available on the Technavio report, Global Insurance Brokerage Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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