GlobalData’s 2025 Global Insurance Broker Market Report reveals that the insurance broker distribution channel was estimated to account for 51.9% of the US general insurance DWP in 2024.
Manogna Vangari, Insurance Analyst at GlobalData, comments: “The US general insurance brokers channel is expected to witness steady growth, driven by increasing opportunities in cyber and embedded insurance. However, the impact of tariff rates, climate risks, and social inflation presents considerable hurdles. The devastating flash floods in Texas and the associated economic losses illustrate the increasing frequency and severity of extreme weather events that insurance brokers must navigate carefully.”
Note: US Brokers data includes brokers, broker-dealers, personal producing general agents, and registered investment advisors.
The US insurance brokers' emphasis on cyber and embedded insurance indicates a significant shift in the market, driven by increasing digitalization and the need for comprehensive coverage against cyber threats. Embedded insurance is growing quickly as a top model for personal lines, surpassing traditional channels. The cyber insurance market presents a compelling growth opportunity for US brokers, as the global cybersecurity market will be worth $303 billion by 2028, according to GlobalData’s Cybersecurity Report.
The 2024 ransomware attack on UnitedHealth Group impacted 100 million people, resulting in a $3.1 billion loss. It disbursed over $2 billion to support healthcare providers impacted by the cyberattack on its subsidiary, Change Healthcare. Digitalization has raised insurance demand, complicating risk management. Brokers need to show policy value and tailor offerings to clients.
Extreme weather events and geopolitical instability have led to hyper-volatility in 2025, affecting financial markets, energy prices, and insurance markets. In the first week of July 2025, the Texas Hill Country suffered devastating flash floods, with an initial estimated economic loss between $18 billion and $22 billion, including damage to residential properties and critical infrastructure, according to the University of Ottawa.
Vangari continues: “With the implementation of the tariff rates, US motor insurers are facing profitability challenges due to supply and demand issues, higher prices, and low economic activity. However, new opportunities arise due to increased local production and domestic coverage, especially in commercial property lines. Brokers are poised to play a pivotal role in mitigating risk for their clients.”
Another challenge impacting the insurance brokers is social inflation, which is on the rise in the US due to an increase in nuclear verdicts, which typically refers to jury awards exceeding $10 million. These verdicts are often associated with product liability, auto accidents, and medical liability cases. These jury verdicts are causing liability rates to rise. According to the National Center for State Courts, California leads with over 1.2 million civil cases filed each year, followed by Florida and New York.
Moreover, the US Chamber Institute for Legal Reform warns that tort costs in the US may reach $1 trillion by 2030. To address this, companies are moving towards long-term partnerships with brokers who can provide sustainable solutions, especially through arrangements beyond jurisdiction, including pools and non-admitted insurance, which is expected to remain in prominence.
Vangari concludes: “The implementation of AI-driven solutions and tools by brokers will enable them to gain deeper insights into market dynamics, allowing for more informed decision-making and strategic planning. The US general insurance brokers market's vulnerability to natural disasters, coupled with the growing significance of embedded and cyber insurance, will continue to influence the market's direction in the next five years.”
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