The global insurance brokerage market is set to grow from $359.27 billion in 2026 to $572.47 billion by 2031, reflecting a compound annual growth rate (CAGR) of 9.77%, according to Mordor Intelligence. This surge is driven by increasing demand for insurance products across various sectors, rising awareness of risk protection, and expanding global operations. Key players like Arthur J. Gallagher & Co. (market cap: $53.29 billion), Aon plc ($69.24 billion), Brown and Brown, Inc. ($19.83 billion), and Willis Towers Watson ($24.38 billion) are expected to benefit from improved pricing strategies and technological advancements in the industry.
However, the Zacks Insurance-Brokerage industry carries a rank of #170, placing it in the bottom 30% out of more than 244 Zacks industries, indicating weak near-term prospects. In the past year, the industry has underperformed, with stocks down 42.6%, compared to a 13.1% increase in the Finance sector and a 32.5% rise in the S&P 500. Earnings estimates for the industry have declined by 24% for 2026, signifying a loss of confidence among analysts.
As of now, the industry’s valuation is trading at a price-to-book ratio of 3X, compared to 8.09X for the S&P 500 and 4.33X for the Finance sector. The sluggish performance of the insurance brokerage industry could impact investor sentiment and growth prospects moving forward.
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