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Global Insurance Brokerage Sector to Reach $628.3b by 2032

by Ella

The global insurance brokerage industry is on a growth trajectory, as projected by Allied Market Research. Valued at $259.7 billion in 2022, it is expected to soar to $628.3 billion by 2032, with a compound annual growth rate (CAGR) of 9.3%. Multiple factors are fueling this expansion. The increasing embrace of digital channels is revolutionizing the way insurance is sold and accessed. In tandem, the surging demand for insurance policies in developing nations, as awareness and economic stability grow, is a significant contributor. Moreover, the integration of IT and analytics solutions by insurance providers is streamlining operations and enhancing risk assessment. The need for professional insurance solutions and services also continues to drive market enlargement.

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However, the path to growth is not without obstacles. The direct purchase of insurance policies and the emergence of alternative platforms for procuring insurance pose challenges. These alternatives may divert customers from traditional brokerage channels. Nevertheless, favorable government policies are anticipated to open up substantial opportunities for market expansion in the coming years. The property and casualty segment is set to experience a CAGR of 10.4% from 2023 to 2032. The spate of natural disasters, including hurricanes, floods, and wildfires, has heightened both consumer and business awareness of the criticality of property insurance, leading to increased demand.

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The retail insurance brokerage segment, which held the largest market share in 2022, is projected to maintain its steady growth. It offers a diverse array of products like health, disability, and wellness-related insurance to meet consumers’ varied needs. Meanwhile, the wholesale segment is forecast to have the highest CAGR at 12.7% during the forecast period. Its function in bridging the gap between retail agents and brokers and insurance carriers providing specialized or hard-to-find coverage is vital for fulfilling unique risk demands. Asia Pacific is slated to have the fastest CAGR of 12.4% and is expected to dominate the market. Government initiatives in the region are creating a hospitable climate for foreign insurance companies to enter and expand, further fueling the growth prospects of the global insurance brokerage industry.

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