Industry Analysis & Industry Trends
The UK insurance sector is the third largest in the world and the largest in Europe. Industry operators compete with banks, financial advisors and underwriters that sell insurance directly. Brokers and agents also provide risk management consulting and other value-added services to their clients for a fee. The majority of industry revenue comes from commissions on premiums sold. Additional advisory services are increasingly being provided by brokers and agents, and are proving to be a new revenue stream for the industry. However, revenue from such services is low compared with overall revenue, at just 5.3%.
There are many factors changing the insurance sector and some that more specifically target brokers and agents... purchase to read more
Industry Report - Industry Investment Chapter
In general, insurance brokers and agents have a high level of capital investment, which is directed to IT and the establishment of a retail presence. Some of the largest industry participants have established extensive distribution networks, in which a large amount of capital has been invested. However, small and non-employing firms can potentially have a very low level of capital expenditure requirement.
However, when capital expenditure of the industry is compared with wages costs, it is extremely low, and is therefore a highly labour intensive industry. This is because the industry depends heavily on labour to provide core services such as sales, customer service, administration and processing of insurance policies... purchase to read more