Insurance Brokerage in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC K6420Revenue
$21.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
21,914
Businesses
5,488
Wages
$X.Xbn
Insurance Brokerage in Australia industry analysis
The Insurance Brokerage industry has capitalised on rising insurance premiums. Severe natural disaster events have compelled insurers to spike premiums and incentivised consumers to avoid risks and seek out insurance brokers. Industry revenue is expected to grow at an annualised 7.7% over the five years through 2023-24 to $21.3 billion. This trend includes anticipated growth of 5.4% in the current year. The COVID-19 pandemic has led to more businesses relying on insurance brokers to purchase suitable insurance products amid a changing environment. Brokers are broadening their service offerings, delving into risk consulting, advisory and insurance support services to maintain their share of insurance distribution. Some brokers have focused on more profitable markets like commercial clients, where the risk coverage is more complicated and new-age risks like cyber security are more prevalent. This shift will continue as insurers' competition in the retail market intensifies.
Trends and Insights
- Australia's active insurance market is bringing higher premium costs, lifting industry commissions. Rising commodity prices and frequent disruptions have elevated requirements for broker advice. However, creeping reinsurance costs could threaten the viability of the sector over the next few years.
- Insurance brokers have a larger market share in the commercial sector compared to the retail sector. Brokers frequently target businesses with niche policy requirements and can meet diverse needs.
- Online sales are mainly managed centrally from a head office located in Sydney or Melbourne. Regional brokerage branches are being phased out in favour of more cost-effective and efficient online channels.
- Brokers have had to deal with competitive factors from both insurers and downstream clients. Insurance brokers have to offer additional services to outperform direct sales from insurers and limit the effectiveness of businesses looking to bring services in-house.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.7 % over the past five years, to reach an estimated $21.3bn in 2024.
Trends and Insights
Businesses have increasingly sought the aid of brokers
- Businesses have seen disruptions rising in frequency and sought out brokers to ensure they aren't underinsured.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Insurance brokers are stepping up to offer more advisory services
- Insurance coverage concerns are becoming more complicated for downstream corporations. As risk profiles change and inflationary pressures become more dynamic, clients will need more clarity when it comes to tailored insurance coverage.
Biggest companies in the Insurance Brokerage in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Steadfast | 12,600.0 | |
AUB | 3,550.2 | |
PSC Insurance | 1,322.5 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Commercial general products, Private general products and Life insurance. Commercial general products is the largest segment of the Insurance Brokerage in Australia.
Trends and Insights
Commercial general products have expanded as risks become too costly to ignore
- Commercial general insurance products include fire and industrial special risks, public liability, professional indemnity, cyber and commercial motor insurance policies.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Life Insurance in Australia
- Health Insurance in Australia
- General Insurance in Australia
- Superannuation Funds Management Services in Australia
International industries
- Global Insurance Brokers & Agencies
- Insurance Brokers & Agencies in the US
- Third-Party Administrators & Insurance Claims Adjusters in the US
- Online Insurance Brokers in the US
- Medical Claims Processing Services in the US
Table of Contents
About this industry
Industry definition
The industry includes individuals and businesses that act primarily as agents or brokers in selling annuities and insurance policies. Industry brokers earn commission income, mostly as a percentage of the premium of insurance policies sold. The industry also includes providers earning fee income for risk management consulting and claim assessment and adjustment services.
What's included in this industry?
Commercial general productsPrivate general productsLife insuranceHealth insuranceInsurance consultingCompanies
SteadfastAUBPSC InsurancePurchase this report to view all 3 major companies in this industry.
Related Terms
PREMIUMBROKERBANCASSURANCEDISTRIBUTION NETWORKINSURTECHIndustry Code
ANZSIC 6420 - Insurance Brokerage in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Australia's active insurance market is bringing higher premium costs, lifting industry commissions. Rising commodity prices and frequent disruptions have elevated requirement...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Insurance brokers have a larger market share in the commercial sector compared to the retail sector. Brokers frequently target businesses with niche policy requirements and c...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Online sales are mainly managed centrally from a head office located in Sydney or Melbourne. Regional brokerage branches are being phased out in favour of more cost-effective...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Brokers have had to deal with competitive factors from both insurers and downstream clients. Insurance brokers have to offer additional services to outperform direct sales fr...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Outside of the major brokers, most insurance brokerages possess a relatively small distribution network. Major broker networks have exerted their influence across multiple ma...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Steadfast's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of AUB's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of PSC Insurance's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Steadfast, and factors influencing its performance in the industry
- Description and key data for AUB, and factors influencing its performance in the industry
- Description and key data for PSC Insurance, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Brokers have found more avenues to generate revenue as Australia's population and number of businesses steadily climb. Insurance brokers will tap into opportunities to provid...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit and wages vary because of the industry's high composition of sole proprietors. In some cases, working proprietors and partners draw their wages directly from profit, m...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Insurance Brokerage industry in Australia in 2024?
The market size of the Insurance Brokerage industry in Australia is $21.3bn in 2024.
How many businesses are there in the Insurance Brokerage in Australia industry in 2024?
There are 5,488 businesses in the Insurance Brokerage industry in Australia, which has declined at a CAGR of 1.3 % between 2019 and 2024.
Has the Insurance Brokerage industry in Australia grown or declined over the past 5 years?
The market size of the Insurance Brokerage industry in Australia has been growing at a CAGR of 7.7 % between 2019 and 2024.
What is the forecast growth of the Insurance Brokerage industry in Australia over the next 5 years?
Over the next five years, the Insurance Brokerage industry in Australia is expected to grow.
What are the biggest companies in the Insurance Brokerage market in Australia?
The biggest companies operating in the Insurance Brokerage market in Australia are Steadfast, AUB and PSC Insurance
What does the Insurance Brokerage in Australia include?
Commercial general products and Private general products are part of the Insurance Brokerage industry.
Which companies have the highest market share in the Insurance Brokerage in Australia?
The company holding the most market share in Australia is Steadfast.
How competitive is the Insurance Brokerage industry in Australia?
The level of competition is high and increasing in the Insurance Brokerage industry in Australia.
