Market Size of United States Insurance Brokerage Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 67.89 Billion |
| Market Size (2029) | USD 82.43 Billion |
| CAGR (2024 - 2029) | 3.96 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Insurance Brokerage Market Analysis
The United States Insurance Brokerage Market size is estimated at USD 67.89 billion in 2024, and is expected to reach USD 82.43 billion by 2029, growing at a CAGR of 3.96% during the forecast period (2024-2029).
The United States insurance brokerage market is growing at a steady rate. Insurance brokerage is a type of activity currently serving about 80% of insurance operations in developed economies. An insurance broker deals with the client to understand their need and negotiate deals with the insurance company on behalf of the client. The pandemic is pressing insurance companies to respond urgently to megatrends such as climate change and digitalization. In addition to this, various government initiatives regarding insurance policies present a significant opportunity for the growth of the insurance brokerage market.
Insurance broker includes individuals or businesses that work for their client's benefit. Brokers are said to be the primary distribution channel for retail and commercial insurance in non-life and group life sectors. Insurance brokerage institutions have adopted various strategies, such as mergers and acquisitions, to gain a competitive advantage over their rivals. In addition, the expansion due to the presence of digital brokers and the integration of IT & analytic solutions are the major driving factors for the insurance brokerage market.
United States Insurance Brokerage Industry Segmentation
An insurance broker is a person or firm that works for a client to sell and negotiate various insurance products. The report includes a detailed note on the importance of insurance brokers in the United States across various insurance products. The United States insurance brokerage market is segmented by insurance type and by brokerage type. By insurance type, the market is further segmented into life insurance and property & casualty insurance. By brokerage type, the market is further segmented into retail brokerage & wholesale brokerage. The report offers market size and forecasts for the United States insurance brokerage market in value (USD) for all the above segments.
| By Insurance Type | |
| Life Insurance | |
| Property & Casualty Insurance |
| By Brokerage Type | |
| Retail Brokerage | |
| Wholesale Brokerage |
United States Insurance Brokerage Market Size Summary
The United States insurance brokerage market is experiencing steady growth, driven by its critical role in facilitating insurance operations across developed economies. Insurance brokers act as intermediaries between clients and insurance companies, negotiating deals to meet client needs. The market is influenced by significant trends such as climate change and digitalization, which have been accelerated by the pandemic. Government initiatives also present opportunities for market expansion. The brokerage sector, which serves as a primary distribution channel for retail and commercial insurance, is seeing increased activity in mergers and acquisitions as firms seek to enhance their competitive edge. The integration of digital brokers and IT solutions is further propelling market growth.
The market landscape is moderately fragmented, with numerous players vying for market share. Key industry participants include Marsh & McLennan Companies Inc., Aon Plc., Willis Tower Watson Plc., Arthur J. Gallagher & Co., and Brown & Brown, Inc. The shift towards digital platforms, driven by the need for remote client interactions during the pandemic, has led to increased digital adoption among brokers, contributing to revenue growth. Despite a recent dip in merger and acquisition activities, a steady rise is anticipated in the forecast period, as companies aim to capture more market share and secure their future enterprise value.
United States Insurance Brokerage Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Demand for Life Insurance is Driving the Market
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1.2.2 Increasing Digital Adoption in the Insurance Industry is Driving the Market
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1.3 Market Restraints
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1.3.1 Increasing Cost Acts as a Restraint to the Market
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1.4 Market Opprtunities
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1.4.1 The Insurance Brokers can Leverage Regulatory Landscape as an Opportunity
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1.4.2 Leveraging Technology to Interact with Customers
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1.5 Industry Value Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Insights on Technology Innovation in Life and Non-Life Insurance Market.
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Insurance Type
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2.1.1 Life Insurance
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2.1.2 Property & Casualty Insurance
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2.2 By Brokerage Type
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2.2.1 Retail Brokerage
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2.2.2 Wholesale Brokerage
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United States Insurance Brokerage Market Size FAQs
How big is the United States Insurance Brokerage Market?
The United States Insurance Brokerage Market size is expected to reach USD 67.89 billion in 2024 and grow at a CAGR of 3.96% to reach USD 82.43 billion by 2029.
What is the current United States Insurance Brokerage Market size?
In 2024, the United States Insurance Brokerage Market size is expected to reach USD 67.89 billion.
