A safe bet: Speciality lines like cyber and gig economy insurance are forecast to support growth

The United Kingdom has been an important backdrop to the development of the insurance industry since the 17th century. Today, the United Kingdom is one of the largest insurance centres in the world, only surpassed in size by Japan, China and the United States. Insurance agents and brokers act as intermediaries between clients and insurers. Unlike insurers, insurance brokers and agents do not have investment operations. Industry revenue is derived from fees or commission from sales of insurance policies and advisory services, and not investment income.Over the five years through 2018-19, industry revenue is estimated to increase at a compound annual rate of 2.7% to reach £15.7 billion, including growth of 2.8% in the current year...read more.

Industry Statistics & Market Size
Revenue
£15.7bn
Annual Growth 14-19
2.7%
Forecast Growth 19-24
Profit
Employment
62,349
Businesses
1,638

Industry Threats & Opportunities

  • Regulatory changes and pension freedom reforms have adversely affected operations
  • Regulation such as the RDR has altered operations and constrained industry revenue growth
  • New growth avenues in lines such as insurance against cyber-attacks are expected to open
  • Industry Report - Industry Key Buyers Chapter

    The industry is characterised by a low market share concentration, with the top four players accounting for an estimated 24.1% of industry revenue in 2018-19. However, over the past five years, the combined market share of the top four players has been increasing due to a series of mergers and acquisitions in the industry.Most businesses in the industry are small operators, but operators can range from sole proprietor brokers who operate independently to organisations as large as some insurance companies. There are many firms within this range, some offering a comprehensive service covering all aspects of the insurance market, while others specialise in particular types of insurance cover. Con...purchase to read more.

    Additional Insights for the Insurance Agents & Brokers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Insurance Agents & Brokers Industry are

  • Having links with suppliers
  • Having an extensive distribution/collection network
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Real household disposable income in the Insurance Agents & Brokers industry impact industry performance..

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    What's in this report

    What is the Insurance Agents & Brokers Industry?

    This industry comprises companies that act as insurance intermediaries independent of insurance providers, either as agents on behalf of insurance providers or as brokers on behalf of a client. Industry participants earn commission, generally a percentage of the insurance premium sold. They also earn fees for providing risk management consulting and claim assessment and adjustment services.

    Industry Products
  • Motor insurance
  • Property and contents insurance
  • Marine, aviation, transport and trade insurance
  • Life insurance
  • General liability insurance
  • Health, medical and accident insurance
  • Annuities
  • Other insurance, consulting and management services
  • Industry Activities
  • Annuity distribution and brokerage
  • Administration of insurance initiatives such as employee benefit and captive insurance programmes
  • Risk management consulting
  • Reinsurance distribution and brokerage
  • Life, health and medical insurance policy distribution and brokerage
  • Property and casualty insurance policy distribution and brokerage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Real household disposable income
  • Number of households
  • Total number of registered motor vehicles
  • Damage caused by natural disasters

  • Current Performance
  • Growth and demand
  • Motor insurance
  • Health, medical and accident insurance
  • Technology and online operations
  • Regulation and revenue constraints
  • Competitive landscape
  • Market structure
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth
  • Commercial markets
  • Personal markets
  • Revenue constraints
  • Competitive landscape and profit
  • Table: Insurance Agents & Brokers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Insurance Agents & Brokers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Classic Car Insurance
  • General Insurance
  • Life Insurance
  • Reinsurance

  • Products & Services
  • Motor insurance
  • Property and contents insurance
  • Marine, aviation, transport and trade insurance
  • Life insurance
  • General liability insurance
  • Health, medical and accident insurance
  • Other insurance, consulting and management services
  • Annuities
  • Chart: Insurance Agents & Brokers Industry Products and Services Segmentation

  • Demand Determinants
  • Economic conditions
  • Commercial lines
  • Product innovation
  • Distribution channels
  • Prices

  • Major Markets
  • Commercial market
  • Personal buyers
  • Chart: Major Market Segmentation for the Insurance Agents & Brokers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesMarketing and advertisingPurchasesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Insurance Agents & Brokers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insurance Agents & Brokers Industry

  • Industry Globalization
    Marsh & McLennan Companies UK Limited, Jardine Lloyd Thompson Group plc, Aon UK Limited, Willis Towers Watson plc,
  • Table: Marsh & McLennan Companies UK Limited - financial performance
  • Table: Jardine Lloyd Thompson Group plc - financial performance
  • Table: Aon UK Limited - financial performance
  • Table: Willis Towers Watson plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Insurance Agents & Brokers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Insurance Agents & Brokers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bancassurance
  • A business model that involves both banking and the sale of insurance policies. In many cases the policy is underwritten by an aligned insurer, but in some cases the bank itself is also an insurer.
  • Captive Insurer
  • A company that is wholly owned and controlled by its parent, established with the sole objective to cover the risk of its owners
  • Hard Market
  • A market where insurance premium prices are increasing. Insurance markets harden when the demand for insurance overshoots supply. The supply of insurance depends on an insurer's capital position.
  • Soft Market
  • A market where insurance prices are falling. Insurance markets soften when insurers have excess capital, i.e. when the supply of insurance is greater than demand. This instigates a price war.
  • Underwriting
  • The process of measuring risk and determining the premium that needs to be paid to insure it.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Insurance Agents & Brokers market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Insurance Agents & Brokers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Insurance Agents & Brokers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Insurance Agents & Brokers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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