When insurance firms launched social media initiatives, the results were rewarding.
Los Angeles, CA (PRWEB) November 29, 2012
The Global Insurance Brokers and Agencies industry is a critical part of the insurance market, distributing policies and providing advisory services to insurance underwriters and consumers. The industry comprises independent brokerages and agencies that act as intermediaries during insurance purchases. “Because the majority of income is associated with insurance transactions,” says IBISWorld industry analyst Eben Jose, “industry revenue generally depends on policy pricing, demand for insurance and the popularity of using agents and brokers in distributing and purchasing insurance.” Over the past five years, the industry has grown at an average annual rate of 2.3%.
The Global Insurance Brokers and Agencies industry is forecast to generate revenue of $542.6 billion in 2012, a 3.7% increase from 2011. An estimated 88.9% of total revenue will be generated in Europe, North America and North Asia. North Asia's presence in the industry is significant considering the underdeveloped nature of most economies in the region. “The unique gatekeeper role of agents in the Japanese insurance market and the growing importance of agents and brokers in China has provided ample opportunity for expansion,” adds Jose. In Japan, more than 90.0% of general insurance policies (e.g. property and casualty) are sold through insurance agents and brokers. Such markets have provided the industry with avenues for growth and, as a result, enterprises and employment have increased consistently. The industry is labor intensive, with industry employment estimated at 14.8 million in 2012. The industry is highly fragmented and is dominated by small players, with the majority of firms being sole traders or partnerships. The entry of smaller players has been particularly evident in emerging insurance markets, which have been going through the early stages of life cycle growth.
Over the next five years, the industry is expected to receive a boost, with revenue forecast to grow through 2017. Demand for insurance products in developed nations will slowly return to prerecession levels and emerging markets will continue to provide opportunity for expansion. From 2013 to 2015, life and health insurance products will recover faster than property and casualty (P&C) products due to sluggish growth in disposable income levels, but the industry's focus on pushing its risk assessment and online distribution products will account for P&C's slow growth. Furthermore, profitability is projected to improve as industry participants increase insurance premiums. For more information, visit IBISWorld’s Global Insurance Brokers and Agencies industry report page.
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IBISWorld industry Report Key Topics
Industry participants act as brokers or agents in selling annuities and insurance policies. Brokers act on behalf of clients, whereas agents represent insurance companies. Insurance brokers and agents earn commission income that is calculated as a percentage of the premium of policies sold. They also earn some fee income for risk-management consulting and other value-added services, including insurance program administration.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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