Independent insurance agencies in the U.S. have shown resilience in the face of challenging market conditions, maintaining a strong presence in key insurance sectors. According to the Big “I” 2025 Market Share Report, these agencies accounted for 61.5% of property and casualty (P&C) premiums in 2024, slightly down from 62.2% in 2023. Despite this small dip, the five-year average remains stable at 61.3%, indicating that independent agencies are holding their ground even during tough times.
The report highlights that there are approximately 39,000 independent agencies across the nation, a decrease from around 40,000 in 2022. This decline is attributed to factors like mergers and acquisitions, an aging workforce, and difficulties in succession planning.
In terms of performance, independent agencies placed 87.2% of commercial lines premiums in 2024, nearly unchanged from the previous year. However, their share of personal lines premiums rose to 39%, reflecting a steady growth trend from 35.7% in 2020. Overall, direct written premiums reached $1.05 trillion in 2024, up from $952 billion in 2023.
Despite facing significant insured losses from natural disasters—totaling $113 billion in the U.S.—the P&C sector reported improved underwriting results. The combined ratio, a key measure of profitability, improved to 92% in 2024 from 96% in 2023. This suggests that agencies are managing their risks more effectively, even as claims from disasters continue to rise.
Certain lines of insurance have struggled more than others, with federal flood insurance reporting a staggering combined loss ratio of 278%. Meanwhile, private crop insurance and multi-peril crop insurance had combined ratios of 127% and 109%, respectively.
The use of surplus lines insurance is on the rise among independent agencies, with a utilization rate of 9.7% in 2024, up from 9.4% the previous year. Private flood insurance also saw increased agency utilization, climbing to 50.6%.
Charles Symington, president and CEO of the Big “I,” emphasized the importance of independent agents in today’s market. He noted that their ability to provide personalized service and education is crucial for clients navigating the insurance landscape.
A recent survey indicated that 65% of agencies have increased communication with their clients in response to ongoing hard-market conditions. Larger agencies, those with more than $500,000 in revenue, are more likely to invest in new technologies, with 45% reporting upgrades compared to 32% of smaller agencies.
As the insurance market continues to evolve, independent agencies are adapting and finding ways to thrive, proving their vital role in the industry.