| SIC Codes: | 6411 |
| NAICS Codes: | 524210 524291 524292 |
The US insurance agencies and brokerages industry includes about 135,000 establishments (single-location companies and branches of multi-location companies) with annual revenue of about $100 billion. Large companies include Marsh, Aon, Arthur J Gallagher, and Brown & Brown. Despite the prominence of large companies in the commercial segment, the industry remains highly fragmented: the largest 50 firms only hold 25 percent of the total market. Many companies that primarily offer insurance products to businesses function mainly as brokers. Captive agencies operate as a sales agent for a single insurer, working on its behalf; independent brokers sell products from several providers.
Demand is related to consumer income and commercial business activity. When the economy grows, so does the demand for personal and business insurance. When the economy contracts, as it did in the late 2000s, demand for insurance falls.
Major insurance products sold by agents and brokers include property and casualty (P/C), health and medical, and life. About 60 percent of industry revenue comes from commissions on property and casualty insurance, split between commercial (35 percent) and personal (25 percent) lines. Commissions on medical insurance accounts for about 15 percent of industry revenue, and life and accident insurance accounts for another 10 percent. Other types of insurance sold by agents and brokers can include annuity and title insurance.
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