Brokers are managing $35.6 billion of intermediated gross written premium, representing 46% of all general insurance written in Australia, according to a report that shows the sector’s importance.

The intermediated broker market has grown at a compound annual rate of 6.1% over the past decade, compared with 5.7% for the general insurance sector.

The report – Data to Direction: Insights from the General Insurance Broking Profession – says businesses and individuals are increasingly relying on brokers as products become more specialised, while digital platforms and data analytics are enabling more efficient service delivery and client need insights.

“At the same time, consolidation within the industry is creating larger, more sophisticated broker networks capable of competing on both service and scale,” it says.

The report is the third in a series from the National Insurance Brokers Association, which has more than 14,000 brokers and authorised representative members that collectively manage 96% of intermediated GWP.

Related article: NIBA small business survey shows ‘broker advantage’

“This report completes a critical piece of the picture,” NIBA CEO Richard Klipin said. “We know the forces shaping our profession, and we know clients trust us to navigate them. Now we have the data to show just how comprehensive, capable and growth-oriented this profession truly is.”

The sector is highly concentrated, with the nine leading NIBA member organisations generating close to 100% of overall gross written premium, reflecting scale-driven economics and consolidation.

Steadfast Group leads the market with a 34% share, followed by Marsh on 20% and Aon Risk Services at 13%.

 

Top nine brokers' market share

 

SMEs represent 44% of clientele, while commercial insurance accounts for 52% of policies. Clients are otherwise spread across large corporates (20%), individuals (19.5%), non-profits (9%) and the public sector (6%).

The broking workforce is 47% female, 27% part-time and has a median age of 44.

NIBA president Nick Cook says the report shows the full scale of brokers’ contribution, and the profession is growing in sophistication, reach and the value it delivers to businesses and communities.

“The foundations for the next decade are strong, and NIBA is committed to building on them,” he said.

The report is produced in partnership with Allianz Australia and draws on insights from CoreData.

Click here to read the full report.