Insurance Agencies & Brokerages

Insurance Agencies & Brokerages

Brief Excerpt from Industry Overview Chapter:

Companies in this industry act as agents to sell insurance policies and annuities underwritten by insurance carriers. Major companies include Arthur J Gallagher & Co, Brown & Brown, and Marsh & McLennan (all based in the US), as well as Aon, Lloyd's, and Willis Towers Watson (all based in the UK).

COMPETITIVE LANDSCAPE

Low interest rates, sluggish premium growth, and rising catastrophe losses are putting downward pressure on margins for insurance agencies and brokerages. Soft market conditions drive consolidation in the industry as companies look to maximize revenue growth.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major insurance products sold by agents and brokers include property and casualty (P/C), health and medical, and life. More than 50% of the industry revenue in the US comes from insurance brokerage and agency services, followed by commissions on property and casualty insurance. Other revenue sources include health and medical insurance (about 15%), and life and accident insurance (about 10%).