Got you covered: Industry revenue will grow despite high competition

The industry experienced slow, steady growth over the past five years. Increased competition from insurance carriers that hire their own sales forces or use online platforms has threatened industry participants during this time, prompting brokers and agents to focus on expanding their level of expertise, as well as their product line, to include risk management and insurance consulting services. However, economic improvements for households and businesses over the next five years are expected to push demand and industry revenue up...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
2.9%
Forecast Growth 17-22
Profit
Employment
63,645
Businesses
25,215
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry is expected to benefit from increases in vehicle registrations and per capita disposable income
  • The regulatory environment tends to fluctuate more dramatically on a province-by-province basis
  • Industry concentration levels have slowly increased in recent years, a trend that is forecast to continue
  • Industry Report - Industry SWOT Analysis Chapter

    The Insurance Brokers and Agencies industry is in the mature stage of its economic life cycle; this stage is characterized by increasing merger and acquisition activity and the wholehearted market acceptance of industry services. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 3.2% over the 10 years to 2022. In contrast, Canadian GDP is projected to grow at an annualized rate of 1.9% during the same period. Typically, an industry is considered to be in the mature stage of its life cycle when growth in IVA trends with GDP growth during a 10-year period...purchase to read more.

    Additional Insights for the Insurance Brokers & Agencies Industry

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

  • Having links with suppliers
  • Having an extensive distribution network
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Housing starts and Per capita disposable income in the Insurance Brokers & Agencies industry impact industry performance..

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    What's in this report

    What is the Insurance Brokers & Agencies Industry?

    This industry includes individuals and businesses that primarily act as agents or brokers in selling annuities and insurance policies. Industry participants earn commission income, mostly as a percentage of the premium of insurance policies sold. They also earn fee income for providing risk management and other value-added services.

    Industry Products
  • Commercial P&C Insurance
  • Personal P&C insurance
  • Life and health insurance
  • Annuities
  • Title insurance
  • Industry Activities
  • Property and casualty insurance policy brokerage
  • Health and medical insurance brokerage
  • Life and accident insurance brokerage
  • Reinsurance brokerage and administration
  • Annuity brokerage
  • Risk management consulting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Per capita disposable income
  • Number of motor vehicle registrations
  • Regulation for the Insurance Brokers and Agencies industry
  • Total health expenditure

  • Current Performance
  • P&C insurance market trends
  • Product evolution
  • Regulatory structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry consolidation
  • Adapting to competition
  • Table: Insurance Brokers & Agencies Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction in Canada
  • Industrial Building Construction in Canada
  • Plastic & Resin Manufacturing in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Life Insurance & Annuities in Canada
  • Property, Casualty and Direct Insurance in Canada

  • Products & Services
  • Commercial P&C Insurance
  • Personal P&C insurance
  • Life and health insurance
  • Other
  • Annuities
  • Title insurance
  • Chart: Insurance Brokers & Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Consumers aged 45 to 54
  • Consumers aged 35 to 44
  • Consumers aged 65 and older
  • Consumers aged 34 and younger
  • Consumers aged 55 to 64
  • Government
  • Chart: Major Market Segmentation for the Insurance Brokers & Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Insurance Brokers & Agencies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Insurance Brokers & Agencies Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Insurance Brokers & Agencies 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 Brokers & Agencies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Combined Ratio
  • A common measure of an insurer's profitability that is calculated by dividing incurred losses and expenses by earned premium.
  • Hard Market
  • A market in which insurance prices are increasing. Insurance markets harden when demand for insurance overshoots supply. The supply of insurance depends on insurers' capital positions.
  • Insurance Agent
  • An individual who is licenced by a province to sell insurance products and services for one or more specific insurance carriers or companies.
  • Insurance Broker
  • An independent agent who represents the buyer during an insurance transaction.
  • Soft Market
  • A market in which insurance prices are falling. Insurance markets soften when strong balance sheets cause the supply of insurance to exceed demand, allowing price wars to ensue.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Insurance Brokers & Agencies market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Brokers & Agencies:
    • 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 of 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 Brokers & Agencies 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 Brokers & Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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