This article provides a detailed overview of the insurance intermediary market, covering its current size, growth trends, and the dynamics shaping its future. It is designed to help newcomers to the industry understand key statistics and growth drivers to inform their business decisions.
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The global insurance brokerage market is valued at approximately USD 328.47 billion as of 2025, showing strong growth trends, particularly in wholesale and digital channels.
In the past five years, the sector has grown at a compound annual growth rate (CAGR) of 9.2-9.5%, which outpaces the overall insurance industry growth of 5-6%. The demand for advisory services, digitalization, and specialty lines such as cyber insurance has driven this growth.
As more intermediaries emerge in both traditional and digital spaces, it is essential to understand these trends in order to navigate the competitive landscape effectively.
Here is a summary of key statistics and trends regarding insurance intermediaries:
| Statistic | Current Data | Trend or Comparison |
|---|---|---|
| Total market size of global insurance brokerage industry | USD 328.47 billion (2025) | Strong growth, driven by digitalization and advisory services |
| CAGR of the insurance intermediary sector | 9.2–9.5% | Outpacing overall insurance industry growth of 5-6% |
| Average revenue per intermediary in the UK (non-investment insurance) | £24.6 billion (2023) | Major portion from commission (83%) |
| Fastest-growing product segment in intermediary sales | Cyber insurance | 8.31% CAGR, driven by rising digital risks |
| Region with the fastest intermediary growth | Asia-Pacific | 7.20% CAGR, led by India and China |
| Share of global premium intermediation held by North America | 37.8% | Largest market for intermediary services |
| Impact of technology on intermediary operations | AI, API-driven platforms, and automation | Enhancing efficiency, reducing placement times by up to 75% |
What is the current number of insurance intermediaries operating in the market, and how has this changed over the past five years?
The number of insurance intermediaries continues to grow significantly, though exact figures for the global market are not always available. However, it is clear that the sector has expanded as demand for insurance products and advisory services has increased.
Over the past five years, this growth has been fueled by the rise of digital platforms, which have opened up new avenues for brokers and agents to reach customers. Additionally, traditional brokerage firms have grown through acquisitions and mergers, further consolidating market share.
Overall, the growth of digital and wholesale brokers is leading the way in increasing the number of intermediaries in the market.
What is the annual growth rate of the insurance intermediary sector, and how does it compare to overall insurance industry growth?
The insurance intermediary sector is growing at an impressive compound annual growth rate (CAGR) of 9.2–9.5%.
This growth rate is significantly higher than the overall insurance industry, which is seeing a more modest growth rate of 5-6% annually. The intermediary sector's superior growth is attributed to the rising demand for advisory services, especially in specialty areas like cyber insurance, and the rapid expansion of digital platforms.
The shift towards digital channels and specialty product lines is expected to keep this trend going for the foreseeable future.
Which distribution channels (brokers, agents, digital platforms, bancassurance) are gaining or losing market share, and at what pace?
Digital platforms and specialty brokers are gaining substantial market share, while traditional models like direct sales and some agent models are under pressure.
Online channels are the fastest-growing segment, with AI-powered personalization enhancing customer experiences. Independent agents have grown their market share in life insurance, while bancassurance remains strong in Europe. However, traditional models like mortgage broking have faced declines in revenue.
These changes highlight a significant shift in the way insurance products are distributed, with digital channels continuing to capture a larger portion of the market.
What is the average revenue per intermediary, and how has it evolved recently across different segments?
Revenue per intermediary varies by region and product segment.
For instance, non-investment insurance intermediaries in the UK generated £24.6 billion in 2023, with a significant portion (83%) coming from commission. The sector's revenue is projected to grow, but rising operating costs and commission compression are impacting margins. Specialty lines, such as cyber, offer higher profitability due to data analytics and delegated underwriting authority.
Overall, revenue per intermediary is increasing, but margins are under pressure as competition intensifies and operating costs rise.
What percentage of insurance premiums is currently distributed through intermediaries compared to direct sales by insurers?
A significant portion of insurance premiums, particularly for complex products, is distributed through intermediaries.
In life insurance, intermediaries account for more than half of the market share, especially in markets like the U.S., where independent agents are becoming more prevalent. Direct sales remain important but are losing ground to intermediaries, especially in complex or specialized insurance products.
The balance between intermediary sales and direct sales will continue to shift towards intermediaries in coming years.
Which product lines (life, health, property, casualty, specialty) are driving the fastest growth in intermediary sales?
Specialty lines, particularly cyber insurance, are the fastest-growing product segment in the intermediary market.
Cyber insurance is advancing at an 8.31% CAGR, driven by rising digital risks and ransomware incidents. Property and casualty insurance continues to dominate in terms of market share, but specialty products like cyber and marine are growing rapidly, indicating a trend towards more niche insurance products.
The growth of these specialty products is expected to continue, driven by increasing digital risks and the need for specialized coverage.
What are the regional differences in intermediary growth, and which markets are expanding most rapidly?
Regional growth is notable, with Asia-Pacific leading in terms of expansion.
In particular, India and China are growing rapidly due to regulatory liberalization and low insurance penetration. The region is expected to grow at a CAGR of 7.20%, outpacing other regions. North America remains the largest market for intermediaries, accounting for 37.8% of global premium intermediation.
As Asia-Pacific continues to develop, it will become an increasingly important market for intermediaries.
How is consolidation in the sector progressing, and what is the trend in mergers and acquisitions among intermediaries?
Consolidation is accelerating in the intermediary sector, with private equity-backed brokers playing a major role.
In 2024, 72% of mergers and acquisitions in the insurance intermediary sector were private-equity-backed deals. Major acquisitions, such as Brown & Brown's USD 10 billion purchase of Accession Risk Management Group, highlight the trend towards consolidation. This is primarily driven by the need for greater scale and efficiency in a competitive marketplace.
Consolidation is likely to continue as brokers seek to expand their reach and operational capacity.
What regulatory changes are most impacting intermediary operations and growth opportunities today?
Regulatory changes are placing more emphasis on compliance and transparency, particularly regarding remuneration and capital standards.
Changes to the Insurance Core Principles are elevating the advisory role of brokers and increasing compliance costs. However, these regulations also present growth opportunities as they enhance the value proposition of intermediaries in complex risk environments.
Intermediaries must adapt to these changes to maintain their position in the market.
How are technology and digital tools (e.g., comparison platforms, AI-based advisory, automation) affecting intermediary efficiency and market penetration?
Technology is revolutionizing the intermediary landscape, increasing efficiency and market reach.
AI-powered tools, API-driven platforms, and digital submission portals are enhancing the efficiency of brokers by automating underwriting, reducing placement times, and improving customer service. These technologies are helping intermediaries to penetrate markets more effectively and capture a larger share of the market.
As technology continues to evolve, it will further empower intermediaries to enhance their operations.
What are the profitability levels of intermediaries, and how do margins differ across channels and regions?
Profitability varies by region and product line.
Margins are higher in specialty lines like cyber and marine insurance due to the use of data analytics and delegated underwriting authority. However, commission compression and rising operating costs are pressuring margins in traditional insurance channels. The profitability of intermediaries is expected to fluctuate based on these factors.
Understanding these trends is essential for intermediaries to maintain profitability in an increasingly competitive market.
What forecasts exist for the number and market share of intermediaries over the next five years, considering both traditional and digital players?
The number of intermediaries is expected to grow, with digital platforms and specialty brokers leading the way.
By 2030, the global insurance brokerage market is projected to grow to USD 480.66 billion, with digital and embedded channels gaining a larger share of premiums. Traditional intermediaries must innovate and adapt to stay competitive in this evolving market.
Digital and tech-enabled brokers will likely dominate the market in the coming years, especially in niche segments.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
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