Digitisation, government support to turbocharge brokerage growth: Allied Market Research
The global insurance brokerage industry will reach $395.04 billion by 2027, according to an Allied Market Research published report, titled Insurance Brokerage Market: Global Opportunity Analysis and Industry Forecast, 2020-2027.
The market was estimated to be $265.03 billion in 2019, the report said. If the prediction proves correct, that would represent a compound annual growth rate of 7.3 percent between 2020 and 2027.
This growth will be driven by increase in demand for insurance policies, offering professional solutions and services, and integration of IT and analytic solutions, the report said. It pointed to supportive government initiatives that promote the acquisition of insurance as a factor that will create opportunities in the insurance brokerage industry.
The report warned growth will be tempered to some extent, however, by increasing customer willingness to buy insurance policies directly. The market has already been held back in recent months by the emergence of COVID-19, the report noted, leading to closures among businesses and public and private organisations globally and undermining demand for insurance services.
North America accounted for nearly two-fifths of the global insurance brokerage market in 2019, but the report predicted Asia-Pacific will enjoy the fastest CAGR of 9.3 percent from 2020 to 2027 as the region’s economies grow and its populations become increasingly familiar with insurance products.
The property and casualty insurance segment garnered the highest market share in 2019, generating more than half of the global insurance brokerage market. This segment is expected to experience the fastest CAGR of 7.9 percent from 2020 to 2027, given the breadth of risks that fall under this umbrella.
The retail segment contributed to more than four-fifths of the global insurance brokerage market, and is projected to dominate by 2027, with a projected CAGR of 7.6 percent to 2027.
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