The insurance brokerage market consists of intermediaries who bringclients and insurance companies togetherto help them find the best possible insurance coverage. Insurance brokers are required by law to put the interests of their clients ahead of those of the insurance companies they work with, thus ensuring impartiality in their advice. The segments of this market include different types of insurance, such as:
- Motor insurance
- Homeowners insurance
- Health insurance
- Life insurance
Insurance bro kers may be paid by insurance companies or their clients, depending on the type of insurance product and the market in which they operate. In addition, some brokers may also receive commissions, fees or premiums.
The insurance brokerage market has seen steady growth worldwide in recent years. The global market is expected to reach nearly $600 billion by 2028, with a CAGR of more than 5% during 2021-2026. Countries such as the U.S. and the U.K. account for a significant share of the market due to the increasing complexity of insurance products, heavy regulation of the sector, and demand for certain specialized advisory services such as life insurance.
In Germany, the market for insurance brokers is also growing, following the global trend. The revenue of insurance brokers in Germany has increased from 20 billion euros in 2015 to over 24 billion euros in 2021. The German market has some peculiarities, as the sector has a rather strict regulation and a strong dominance of the public sector in health insurance.
There are many insurance brokers in Germany, such as:
- Funk Group, one of the largest independent insurance brokers in Germany, specializing in commercial insurance.
- Württembergische Insurance, a German insurance company.
Recently, more and more online platforms have emerged that offer comparison services for insurance products. These platforms allow customers to easily reduce the cost of the insurance policies they normally purchase.
1.2 Global market
The insurance industry is present in every country in the world and has generated over $* trillion in life and non-life insurance premiums by ****:
Premium income of the global insurance industry Worldwide, **** - ****, in billions of USD Source: ****
In ****, life insurance premiums totaled USD **** billion and non-life premiums totaled USD **** billion. Between ...
1.3 German market
Insurance brokers depend on the insurance market, here is first an overview of insurance premiums and charges in Germany.
Insurance premiums by line of business in Germany Germany, ****-****, in EUR billion Source: ****
In the period from **** to ****, primary insurance as a whole in the German insurance industry recorded continuous growth. Total ...
2.1 Overview of insurance companies in Germany
Insurance brokers depend on the supply of insurance, and there are many different types of insurance, each occupying a more or less important segment of the sector:
Survey in Germany on insurance policies taken out in the household Germany, ****, in % Source: VuMa Statutory health insurance remains the most widespread type of ...
2.2 Typology and preferences of insurance customers
Preferences Customers' preferences with regard to insurance and insurance brokers are extremely complex and are influenced by various factors. A recent chart clearly illustrates which aspects are of particular importance to customers. A key concern for customers is "investment security." With an impressive ** percent share, the chart shows that the security ...
2.3 Life insurance
Life insurance policies play a significant role in the German insurance market and are an important form of financial security and provision for the future for many people. These insurance products offer a variety of benefits and serve as a tool for long-term financial planning and security. A life insurance policy ...
2.4 Property and casualty insurance
Property and casualty insurance plays a prominent role in the German insurance market and is an essential form of protection against various risks and damages for many people. This line of insurance comprises a wide range of policies that offer protection against financial losses that may arise from unforeseen events such ...
2.5 Health insurance (PKV)
Private health insurance occupies an important position in the German insurance market and plays a crucial role in the health care and coverage of the insured. It offers an alternative to statutory health insurance and is aimed primarily at people with higher incomes or specific demands on their health protection.
3.1 Definition of terms
An insurance broker operates on a professional basis and undertakes the brokerage or conclusion of insurance contracts on behalf of the customer without being commissioned by an insurer or insurance agent. The broker is a fiduciary trustee of the customer and acts exclusively in the interest of the policyholder. ...
3.2 Insurance brokers and intermediaries winding up
At the beginning of ****, a total of ***,*** persons were registered in the insurance broker register of the Association of German Chambers of Industry and Commerce (***). **,*** of these were registered as insurance brokers in . Insurance broker companies could be counted in total **,*** in Germany.
The given graph shows a strong decrease in ...
3.3 Biggest players
In ****, Allianz maintained its position as Germany's largest insurer with impressive premium income of about***.* billion euros. The company is headquartered in Munich and operates in various lines of insurance. It was followed in second place by Munich Re or Münchner Rück, which recorded a premium volume ...
3.4 Online sales
Online sales brokers have become much more important in recent years and have advanced to become an important pillar in the insurance market. Digitalization and changes in customer behavior have led to more and more insurance products being sold online. This development is also reflected in a table showing the share ...
4.1 Overview of brokerage services for companies and individuals
Insurance brokers offer their services to companies and individuals. The aim is to find the best value for money in insurance for their customers.
Unlike brokers, they are not tied to a specific insurance company and therefore must provide the best offers to their clients without any conflict of interest.
4.2 Remuneration models of insurance brokers
There are various remuneration models used by insurance brokers when brokering insurance policies. Depending on the type of insurance and the individual needs of the customer, different remuneration structures can be applied.Here we rely on the information provided by Sebastian Kresse.
The most common form of insurance brokerage ...
4.3 InsurTech - The digital revolution in the insurance industry
In recent years, the insurance industry in Germany has also undergone profound change, driven by the rapid development of new technologies. Insurtech, a compound of "insurance" and "technology," stands for insurance startups that use innovative technologies to revolutionize the insurance industry. These emerging companies focus on digitizing the traditional processes of ...
4.4 Development of highly specialized brokers
Insurance brokers are facing a gradual decrease in margins and a concentration of the sector, which makes activities increasingly complicated for independent brokers. Nevertheless, the development of insurance for niche markets allows some players to differentiate themselves and maintain comfortable margins. [***]
Among these niche markets, some are particularly promising, such ...
5.1 Legal environment
The regulation and legal environment for insurance intermediaries in Germany are subject to a large number of statutory rules and regulations. Although there is no direct supervision of insurance intermediaries by the German Federal Financial Supervisory Authority (***) enable BaFin to monitor the sales activities of insurance companies. These include, in particular, ...
5.2 Threat of a commission ban
The possibility of an impending ban on commissions in financial advisory services has caused considerable unrest in the industry. In the market for insurance intermediaries in particular, there are fears that such a ban could have a significant impact on their business models and customer advice.
According to an article in ...
6.1 Positioning of the players
- Allianz Versicherung
- Aon Versicherung
- Marsh GmbH
- ERGO Group
- HDI Global SE
- Gothaer Versicherung
- Ecclesia Gruppe
- Funk Versicherungsmakler GmbH
- GrECo JLT GmbH
- Check24 Versicherung
- Verivox Versicherungsvergleich GmbH
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