MSMEs in Business Services – Insurance, Broking

The global insurance brokerage market was valued at $259.7 billion in 2022, and is projected to reach $628.3 billion by 2032, growing at a CAGR of 9.3% from 2023 to 2032. Indian Broker Market is growing rapidly as the Broker in reality is the one intermediary who truly represents the customer. However all said and done, brokers also have their ‘Favourites’ and therefore it is seen that due to better services they receive, Brokers also tend to recommend the ‘insurer’ of choice to the client when presenting the mandates. This is the biggest advantage over agents or banks who can only suggest from a limited choice.

There were 665 Brokers as on 1st June 2024 registered with IRDAI (https://irdai.gov.in/list-of-brokers) and there is also an association of Brokers (https://www.ibai.org/) who support each other within the broking community. Insurance and Brokers being a highly regulated process, there is a lot at stake including managing the expectations of Corporate clients whose entire portfolio is managed by Brokers.

Brokers while being paid a lower commission as compared to Agents however make up for their volumes and client base especially since their portfolio consists primarily or majorly of General Insurance solutions (Marine, Accidental, Employee – both risk as well as indemnity etc). There is a lot of expertise and skill required to manage a broking business and large International Players including Marsh Brokers are present to provide world class Broking services.

To know more on how to manage your broking business better and also to reach the larger retail market such as being done by online brokers such as Policy Bazaar (https://www.policybazaar.com/) contact@nat-cons.com

(Pic courtesy from www.deloitte.com)