1.1 Definition and scope of study

Insurance brokers are part of the largest category of middlemen, those who facilitate the reconciliation of supply and demand within a given organizational context (e.g. real estate, insurance). Unlike insurance agents, who are employed by an insurance company, brokers work on behalf of the client and have no working relationship with the insurance company.

The role of the broker is therefore not to sell a specific policy, but to provide advice on a variety of solutions. Insurance brokers can work independently or for a brokerage house and can represent two types of clients: private or corporate.

The advent of the Internet has helped to develop insurance contracting channels of all kinds. This is a problem for insurance brokers and a source of increased competition, as visibility becomes more difficult and online supply more abundant.

The insurance market in Brazil is still characterized by high concentration and low use of technology. The insurance brokerage segment has about 100,000 professionals, in addition to about 4,000 new license applications per year. According to CNseg (National Confederation of General Insurance, Private Pension and Life, Supplementary Health and Capitalization Companies), a growth between 6.3% and 8.4% is expected this year. New opportunities rely on certain sub-segments such as housing insurance, the extended guarantee and rural insurance.

Players planning to enter the insurance brokerage market should be trying the new Provisional Measure 905, of the programa Verde e Amarelo (Green and Yellow program) to stimulate employment, which ended with the regulation of the insurance brokerage profession. Before the measure, no person without professional registration with Susep (Superintendence of Private Insurance) could work as an insurance broker. [Folha de S. Paulo]

1.2 A fast-growing global market

The global insurance market was valued at *** billion USD in ****, with an expected CAGR of *.*% until ****, to reach nearly *** billion USD [***].

Size of the global Insurance Brokerage market World, ****-*****, in billion USD Source: ****

The geographical region that is expected to experience the strongest growth in this period is Asia-Pacific, with ...

1.3 The Brazilian market

The insurance brokerage market is one that is very much dependant on the whole of the insurance industry. The insurance market in Brazil is quite siginificant for the economy, representing *.*% of the country's GDP.

In ****, the revenue from this industry was of *** billion Brazilian Reais, a value that has been following ...

2.1 Understanding the demand drivers

The Brazilian insurance market is extremely diverse and is driven by a significant number of factors which can be synthesized below:

2.2 Evolution of the factors influencing the main insurances in Brazil

In this section, we will concentrate on the evolution of the demand factors influencing the main insurance categories in Brazil: automobile, health and property insurance, where insure brokers are actively present.

First of all, the evolution of the number of cars is an important determinant of the demand for car insurance. ...

2.3 A sector disrupted by technology

The term "InsurTech" is used to define companies, usually start-ups, which use technological innovations, such as artificial intelligence or blockchain, to improve the efficiency of the current insurance industry model and increase savings. The term comes from a combination of the words "insurance" and "technology" and was coined following the example ...

3.1 The insurance brokers in Brazil

As of ****, it is estimated that there are just under ***,*** insurance brokers around the country. These brokers are separated by legal form:

Private individuals Legal entities (***)

Most insurance brokers operating in Brazil are part of the first category - **.*% are private individuals and **.*% are legal entities [***].

Distribution of insurance brokers by ...

3.2 The key players

As seen in section *.* of this study, there are plenty of insurance brokers in Brazil. These brokers can either be private individuals or legal entities. In regards to legal entities, we can categorise them between national (***) and international companies.

A publication by Estadao in **** shed light about the biggest insurance brokers ...

3.3 The development of the insurance brokerage market

A study conducted by Klooks in **** on companies operating in the insurance brokerage market allows us to understand with more detail the developments of this market.

First of all, it is important to note the growth of the market. The companies in this industry experienced on average an *.*% increase in turnover ...

4.1 The different types of insurance available

In the insurance sector, the main distinction is between life insurance and non-life insurance. As far as non-life insurance is concerned, the offer is very diversified, as shown in the table below summarising the different offers:

In particular, we can observe the following trends in the offer:

Enrichment, especially in the ...

4.2 The changing dynamics of the market

The insurance brokerage market is growing in Brazil, and because of that, the market is becoming more competitive. This means that the players in this industry will need to embrace to the new changes and adapt their offers [***].

Firstly, professionals in this industry need to continue developing their skills in order ...

4.3 New offers to face the Covid-19 pandemic

The insurance industry has implemented new measures to provide support for the COVID-** pandemic. These include: the suspension, extension and deferment of premiums for life insurance policies, non-auto damages and auto coverage, the blocking of all actions to recover unpaid premiums and deductibles, the extension of existing guarantees with specific clauses, ...

5.1 Regulations

Given the significance of the insurance industry for the economy of Brazil, it is no surprise to see that the market is highly regulated by a number of different entities.

The practice of insurance brokers in Brazil is regulated by Law No *.***, of ** December ****. This law relates to the following elements ...