NearTerm

Bright Near-Term Prospects for Insurance Brokerage Industry

The Zacks Insurance – Brokerage  industry comprises companies that primarily offer insurance and reinsurance products and services. Insurance brokers act on behalf of their clients and offer advice keeping in mind clients’ interests against brokerage fees. Some of these companies are also involved in providing risk management, third-party administration, and managed health care services.

Technavio analysts forecast the global insurance brokerage market to grow by $13.84 billion or at a CAGR of more than 4% during 2020-2024, according to their latest market research report.

Here are the industry’s three major themes:

  • The operational results of the industry players are affected directly by clients’ level of business activity, which in turn, depends on the extent of economic activity in the industries and markets that they serve. The disruption caused by the COVID-19 pandemic rendered severe volatility to the stock market and resulted in recessionary fears across the globe. Like the second
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Bright Near-Term Outlook for Multiline Insurance Industry

The Zacks Multiline Insurance industry comprises companies that provide a single insurance coverage, bundling automobile, homeowner, long-term care, life and health insurance to individuals and businesses. The insured pays a single premium and is covered for many things through a single contract.

These companies cover commercial and personal properties, automobiles, marine, livestock, aviation, personal accident, life including permanent and term insurance, supplemental accident and health insurance, workers’ compensation, annuity products, private mortgage insurance, et al. The industry participants also provide risk management services.

Here are the industry’s three major themes:

  • The U.S. multiline-insurance sector should face operational challenges due the pandemic. Slowdown in economic growth might weigh on new sales and insurable exposures. While auto claims are likely to decline, frequency of claims from essential service industries are bound to rise. Further, a spike in mortality will induce higher claim payments for life insurance coverages. A low interest rate and
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