Independent Agencies Continue To Thrive Amid Hard Market
Despite navigating a challenging hard market, independent agencies have demonstrated remarkable resilience and growth as outlined in the 2024 Market Share Report from the Big “I”.
“Despite the significant challenges posed by the hard market, independent agencies’ market share held steady and even continued making gains in key lines—a testament to the strength of the independent agency channel,” says Charles Symington, Big “I” president & CEO. “In this current environment, choice is more important to customers than ever before, and independent agents continue to prove themselves as trusted advisors for their clients and indispensable partners in the insurance marketplace.”
The annual report, issued by the nation’s largest independent insurance association, analyzes data from AM Best to deliver an in-depth analysis of the independent agency channel’s performance within the property and casualty (P&C) insurance sector for the past year.
In particular, the report focuses on key metrics and trends, such as market share stability, performance in commercial and personal lines, significant increases in direct written premiums, growth in homeowners insurance, and the strategic utilization of surplus lines. The insights provide a comprehensive understanding of the independent agency channel’s robust positioning and strategic adaptability in a fluctuating market landscape.
Agents’ Penetration Rates in P&C Lines
Key takeaways from this year’s report:
1 Market Share Stability and Growth: The independent agency channel maintained a strong position, placing 62.2% of all property and casualty insurance written in the U.S. in 2023. Despite the hard market, the channel showed resilience and continued to grow, especially in personal lines.
2Commercial and Personal Lines Performance: Independent agencies held steady in commercial lines, placing 87% of the commercial lines written premium. In personal lines, they increased their share to 39% in 2023, up from 38% in 2022, continuing a five-year growth trend.
3 Increase in Direct Written Premiums: The report noted a significant rise in direct written premiums, reaching $952 billion in 2023, up from $861 billion in 2022, indicating overall market expansion.
4 Growth in Homeowners Insurance: Independent agencies saw gains in homeowners insurance, with their market share rising to 51% in 2023, up from 50% in 2022 and 46% in 2021, showcasing a consistent upward trend.
5 Surplus Lines Utilization: The utilization of surplus lines by independent agencies continued to grow, reaching a 9.3% rate in 2023, up from 9% in 2022 and 6% over the past five years. Private flood surplus lines also remained popular, with a utilization rate of 46% in 2023, reflecting the channel’s adaptability in a hardening market.
How to access a copy of the full report
The Market Share Report is free for Big “I” members and states associations. To order or purchase a copy of the complete 2024 Market Share Report, visit the Big “I” Market Share Report webpage.
