Global insurance brokerage sector to reach $628.3b by 2032

The wholesale segment is anticipated to have the highest growth rate at 12.7%.

The global insurance brokerage industry, valued at $259.7b in 2022, is projected to grow to $628.3b by 2032, with a compound annual growth rate (CAGR) of 9.3%, according to Allied Market Research.

This growth is driven by several factors, including the increasing adoption of digital channels, rising demand for insurance policies in developing nations, and the integration of IT and analytics solutions by insurance providers. 

Additionally, the need for professional insurance solutions and services further propels market expansion, the report said.

However, challenges such as the direct purchase of insurance policies and the availability of alternative platforms for acquiring insurance may temper this growth. 

Despite this, favourable government policies are expected to create significant opportunities for market expansion during the forecast period.

The property and casualty segment is expected to see a CAGR of 10.4% from 2023 to 2032. The rising frequency and severity of natural disasters, such as hurricanes, floods, and wildfires, are driving both consumer and business awareness of the importance of property insurance coverage, thereby increasing demand.

Holding the largest market share in 2022, the retail insurance brokerage segment is projected to continue its steady growth, the report said. Retail providers offer a range of products, including health, disability, and wellness-related insurance, catering to the diverse needs of consumers.

Meanwhile, the wholesale segment is anticipated to achieve the highest CAGR at 12.7% over the forecast period. Its role in connecting retail agents and brokers with insurance carriers offering specialised or hard-to-find coverage makes it crucial for addressing unique risk requirements.

Allied Market Research noted Asia Pacific is set to have the fastest CAGR of 12.4% and is expected to dominate the market during the forecast period. Government initiatives across the region are fostering an environment conducive to foreign insurance companies entering and expanding their markets.