A Look at what Massachusetts and New England independent agencies should note
Two new Big “I” releases—its 2025 Market Share Report (July 17) and the 2025 Best Practices Study with Reagan Consulting (Aug. 12)—offer a concise snapshot of the independent agency channel’s position coming out of 2024: overall market share remains steady, combined loss ratios improved alongside premium growth, and the industry’s top-performing agencies posted record organic growth and healthy profitability.
The Market Share Report, which compiles and analyzes property-casualty premium data from AM Best, finds the independent channel continuing to place the majority of U.S. business. Based on 2024 data, independent agencies placed 61.5% of all P&C insurance written in the U.S. While this is a 0.7% decrease from 2023, penetration remains “steady across the five-year average of 61.3%, despite the challenges of the hard market.” By major segment, independent agencies wrote 87.2% of commercial lines written premiums (consistent with 87.3% in 2023) and 39.0% of personal lines (up from 38.7% in 2023 and 35.7% in 2020).
Premium growth and profitability moved in tandem. Direct written premiums reached $1.05 trillion in 2024, up from $952 billion in 2023. Even with continuing loss factors—“including $113 billion in insured natural catastrophe losses in the U.S., according to Aon”—direct written premium increases of 9.6% in 2024 resulted in combined ratios of 92% for 2024, down from 96% in 2023 and 98% in 2022. Stress points remained concentrated in certain lines, with the highest combined loss ratios in federal flood (278%), private crop (127%), and multi-peril crop (109%).
Placement tools also continued to expand. Surplus lines utilization among independent agencies hit 9.7% in 2024, maintaining its upward trajectory from 9.4% in 2023 and an 8.7% five-year average. Private flood utilization rose to 50.6%, up from 46.0% in 2023 and 44.9% over the past five years.
Summing up the channel’s role in a difficult environment, Charles Symington, Big “I” president & CEO, said: “The hard market conditions of the last few years have presented independent agencies across the country with significant challenges, but the results of the 2025 Market Share Report demonstrate agencies’ ability to adapt to serve their communities,” adding, “[I]n a complicated and fast-evolving market, the personalization, choices and education that independent agents provide are crucial, proving once again their role as key partners in the insurance distribution channel.”
The Big ‘I” also released its 2025 Best Practices Study this summer. The study arrives as the first year of a new three-year cycle, examining firms that newly qualified as 2025 Best Practices agencies. Conducted jointly by the Big “I” and Reagan Consulting for the past 32 years, this year’s study also updates its top revenue bands, replacing the prior “over $25 million” group with $25–$100 million and over $100 million.
Tom Doran, a partner with Reagan Consulting, framed the change and results: “The new Best Practices class continues the growth the independent agency channel has seen since 2020. The new revenue category adjustment was made to account for the remarkable growth that has taken place at the top end of the market. This year shows strong organic growth results and profitability, with our metrics indicating the industry has never been healthier.”
On performance, the study reports:
- Organic growth remains at a record high: 10.7%—driven by strong organic growth in personal P&C and group benefits, while commercial P&C revenue growth slowed in all revenue categories except $1.25–$2.5 million due to a moderating rate environment.
- Profitability near records: EBITDA margins of 26.1%, just shy of last year’s 26.3%.
- Rule of 20 sets another all-time high: 25.1 (organic growth + 50% of pro forma EBITDA).
- Sales velocity remains healthy: All revenue categories exceeded the 12%–13% threshold associated with a healthy sales culture.
- Producer pipeline investment is on target: NUPP at 2.0% (vs. 1.9% in 2024); “a healthy NUPP investment is 1.5%–2.0%,” indicating appropriate reinvestment.
- Productivity rose: Revenue per employee reached $228,321; however, higher average compensation per employee prevented record profitability.
Recognizing the cohort, Symington said: “Despite some market headwinds, Best Practices agencies delivered another year of excellent results. We extend our congratulations to these cream-of-the-crop agencies for their outstanding operational success. They are the best examples of the resiliency and strength of the independent agency channel.” The study, he noted, provides “benchmarks and insights for all independent insurance agencies to strengthen their foundations for the challenges the market may bring in the coming years.“ “All agencies can look to these results and learn from the best,” Symington says.
Thoughts on what may matter most for Massachusetts and New England independent agencies
- Market share is steady. The independent agency channel placed 61.5% of all U.S. P&C written in 2024—down 0.7% from 2023, but in line with the five-year average of 61.3% amid a hard market.
- Commercial-line leadership is intact. With 87.2% of commercial written premiums placed through independents (vs. 87.3% in 2023), the channel’s core franchise remains stable for regional middle-market and small commercial accounts.
- Personal-line progress continues. The rise to 39.0% of personal lines—up from 35.7% in 2020—signals continued traction for independent agencies that have diversified into personal P&C.
- Improving combined ratios provide breathing room. The shift to a 92% industry combined ratio for 2024 (from 96% in 2023 and 98% in 2022) aligns with the market-share snapshot of steady penetration despite a hard market backdrop.
- Surplus lines and private flood are becoming core tools. 9.7% surplus lines utilization and 50.6% private flood utilization underscore the importance of market access and specialty placement—capabilities that many New England agencies have leaned on to navigate challenging property and other capacity-constrained risks.
- Benchmarks to run the business. The Best Practices Rule of 20 at 25.1, EBITDA margins at 26.1%, and record 10.7% organic growth offer concrete targets, while NUPP at 2.0% and sales velocity above 12%–13% reinforce the value of consistent producer recruiting and a disciplined sales culture.
- Scale-aware comparisons. With new top revenue bands ($25–$100 million and over $100 million), agencies can benchmark more precisely at the upper end—even as findings remain applicable across all size categories.
Editor’s note: This article is based solely on Big “I” press releases dated July 17 and Aug. 12, 2025. A press copy of the full reports was not reviewed at the time of publication.
