The U.S. insurance brokerage market is expected to grow at a CAGR of 5.72% from 2025 to 2032, increasing from USD 70.48 billion in 2024 to USD 109.95 billion by 2032.
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Key Growth Drivers of the U.S. Insurance Brokerage Market
Several factors are driving the expansion of the insurance brokerage industry in the United States. The rising demand for personalized insurance solutions is prompting brokers to tailor policies for both individual and business clients. The increasing complexity of business risks—especially in the small and medium-sized enterprise (SMB) sector—necessitates effective risk management and specialized insurance strategies.
Technological advancements, including artificial intelligence (AI), data analytics, and digital transformation, are improving industry efficiency. Additionally, the growing frequency of natural disasters and climate-related risks is pushing demand for comprehensive coverage. The market is also being influenced by heightened interest in cyber insurance, employee benefits, and healthcare insurance, as businesses and individuals adapt to an increasingly digital and health-conscious landscape.
Other factors fueling market growth include consolidation through mergers and acquisitions (M&A), the expanding gig economy, and the growing emphasis on sustainability and green insurance solutions as companies respond to rising premiums.
Role of Insurance Brokers in the Market
Insurance brokers serve as intermediaries between clients and insurance providers, helping individuals and businesses secure the best possible coverage. By assessing client needs, providing expert advice, and negotiating favorable terms, brokers simplify the insurance process. They offer a range of policy options, including property and casualty, health, and life insurance, ensuring clients receive optimal protection.
A notable example of industry involvement in disaster recovery efforts is Truist Financial Corporation’s January 2025 announcement of a partnership with the Center for Disaster Philanthropy. Through this initiative, the company pledged over USD 20 million in disaster recovery grants for Western North Carolina under its Truist Cares program.
Surge in Mergers and Acquisitions Boosts Market Growth
Mergers and acquisitions (M&A) are playing a pivotal role in shaping the U.S. insurance brokerage market. Companies are increasingly pursuing strategic partnerships and acquisitions to strengthen their market position, expand service offerings, and enhance operational efficiency. This consolidation trend allows firms to enter new markets, leverage synergies, and gain a competitive advantage in an industry that remains highly fragmented.
By acquiring specialized brokers, large firms can diversify their portfolios and provide a broader range of solutions. Additionally, M&A activity facilitates the adoption of new technologies, streamlining operations and enabling entry into emerging markets such as cyber insurance and employee benefits.
For instance, in February 2025, Arthur J. Gallagher & Co. acquired Syracuse-based Dominick Falcone Agency, Inc., and its subsidiary, Falcone Associates, Inc. The deal, though undisclosed in financial terms, underscores the trend of larger brokerages acquiring regional firms to expand their footprint and service offerings.
Digital Transformation Drives Market Expansion
The rapid adoption of digital and automated solutions is significantly influencing the U.S. insurance brokerage market. The growing use of AI, machine learning (ML), and data analytics is enabling brokers to offer more personalized services while enhancing operational efficiency. Automation of key processes such as claims handling, underwriting, and customer service is reducing costs, minimizing errors, and improving response times.
Furthermore, the rise of digital channels is allowing brokers to reach a broader audience. Customers can now compare policies, obtain quotes, and manage insurance products through online platforms, aligning with the expectations of tech-savvy consumers who prioritize convenience and efficiency.
An example of this digital shift is Willis Towers Watson’s February 2025 launch of a new Rating, Pricing, and Underwriting accelerator for Guidewire. This integration enhances insurers’ ability to quickly incorporate Radar’s pricing environment, demonstrating how digital tools are transforming brokerage operations.
Life Insurance Segment Leads the Market
The life insurance segment is expected to dominate the U.S. insurance brokerage market, driven by increasing consumer awareness of financial security, retirement planning, and family protection. As more individuals recognize the importance of life insurance, demand is growing for policies such as term life, whole life, and universal life insurance.
Brokers play a crucial role in guiding customers through the complexities of life insurance policies, helping them select plans that align with their financial goals. Additionally, advancements in digital platforms and automated tools are simplifying policy comparisons, quoting, and claims processing, making life insurance more accessible to a broader audience.
A significant development in this segment was Prudential Financial Inc.’s August 2024 launch of Prudential Momentum IUL, an indexed universal life insurance product issued by Pruco Life Insurance Company. This product provides customers with financial flexibility and protection, reinforcing the growing importance of life insurance in financial planning.
The South Region Dominates the Market
The South is the leading region in the U.S. insurance brokerage market, driven by a strong economy, rapid population growth, and diverse industries such as healthcare, construction, agriculture, and technology. The region’s business-friendly policies, including lower taxes and a pro-business regulatory environment, have attracted numerous insurance firms and brokers.
Brokers in the South are capitalizing on this growth by offering specialized services tailored to the region’s unique needs. The adoption of digital tools and automation has further enhanced efficiency and customer experience, contributing to the region’s market dominance.
In January 2025, Willis Towers Watson Plc expanded its offerings in the U.S. by making its Investment Management Insurance (IMI) Plus product available to American clients. Initially launched in the UK and Canada in mid-2024, this integrated policy provides asset managers with comprehensive risk protection. Such product introductions reflect the ongoing expansion and innovation within the South’s brokerage market.
Future Market Outlook (2025–2032)
Several key trends will shape the future of the U.S. insurance brokerage market:
- Personalized Insurance Solutions: As customer expectations evolve, brokerage firms will focus on delivering highly tailored insurance products.
- Insurtech Innovations: Startups leveraging AI, ML, and data analytics will drive industry advancements by improving risk assessment accuracy and enhancing customer personalization.
- Integration with Digital Platforms: The use of enterprise resource planning (ERP) systems, APIs, and digital tools will streamline interactions between insurers, brokers, and clients.
- Continued Market Consolidation: Large brokerage firms will continue acquiring smaller entities to expand their reach and service capabilities.
Report Scope
The report, “United States Insurance Brokerage Market Assessment, Opportunities, and Forecast, 2018-2032F,” provides a detailed analysis of the market, including size, segmental performance, growth drivers, and future opportunities. It also profiles key industry players, examining their market share, business strategies, and competitive positioning. This comprehensive assessment equips stakeholders with valuable insights into the evolving landscape of the U.S. insurance brokerage industry.
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COVID-19 Impact Analysis on Insurance Brokerage Market report published by Value Market Research provides a detailed market analysis comprising market size, share, value, growth and trends for the period 2020-2027.
Moreover, this market report also covers regional and country markets in detail.The research report also covers the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide.
The major players in the insurance brokerage market include Acrisure, LLC, Aon plc, Brown & Brown, Inc, Gallagher, HUB International Limited, Lockton companies, Marsh & McLennan Companies Inc., Truist Insurance Holdings, USI Insurance Services L.L.C, and Willis Towers Watson.
This section consists of a holistic view of the competitive landscape that includes various strategic developments such as key mergers & acquisitions, future capacities, partnerships, financial overviews, collaborations, new product developments, new product launches, and other developments.Get more information on "Global Insurance Brokerage Market Research Report" by requesting FREE Sample Copy at https://www.valuemarketresearch.com/contact/insurance-brokerage-market/download-sampleMarket DynamicsA surge in demand for professional insurance policies and solutions will be the primary driver for the insurance brokerage market.
The ability to provide timely pertinent coverage based on individual needs by insurance firms and several benefits provided to the policyholders will be a market booster.
Direct purchases of insurance policies by customers and the availability of alternative platforms to purchase insurance policies will hamper the market's growth.The research report covers Porter’s Five Forces Model, Market Attractiveness Analysis, and Value Chain analysis.
