The global insurance brokers sector will hit nearly $55 billion by 2021, according to new research.
According to data from research company MarketLine, the sector saw a compound annual growth rate (CAGR) of 7% between 2012 and 2016, reaching a value of $42.8 billion. That rate is expected to slow somewhat over the next few years, to a CAGR of 5.1% for 2016-2021. The sector is projected to reach a total value of $54.8 billion by the end of that period.
While the insurance broker sector’s value has increased in all regions of the globe, growth has been driven mainly by revenue increases in the US, which accounts for 63% of global sector revenues, according to MarketLine.
“Demand for setting up new insurance contracts has been quite strong in the US market in recent years and, with the country’s penetration of brokers as a distribution channel the highest in the world, much of it is directed toward brokers,” said Nicholas Wyatt, MarketLine project leader.
The Chinese market has also seen rapid expansion, with a CAGR of 16.2% between 2012 and 2016.
“Brokerage is nowhere near as prevalent in Asia as it is in North America, but the emerging demand for insurance products based on rising income and economic acceleration of countries within the region has stimulated the sector’s growth there,” Wyatt said. “Nowhere has this been more apparent than China.”
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