The US insurance industry shows clear differences across states when it comes to the number of agents and the amount of premiums they bring in. Florida, Texas, and California lead the way with the largest pools of licensed agents, making up nearly 38% of all agents in the country. Florida tops the chart with just under 370,000 agents, Texas follows closely with 354,000, and California has about 189,000 agents. These states offer plenty of opportunities but also face intense competition.
Outside these three, other states like Illinois, Georgia, New York, Pennsylvania, and Ohio have far fewer agents, together accounting for just under 20% of the total agent count. The high number of agents in the top three states is likely due to large populations, high demand for insurance related to natural disasters, easier regulatory environments, and a steady flow of consumers. While competition is tough, it also means there is a constant stream of business to chase.
For insurance companies and brokerages, this means that growing in states like Florida, Texas, or California may rely less on hiring more agents and more on working smarter. Using better technology, focusing on keeping clients, and offering unique services can help agents stand out when everyone else is crowded in. Marketing also needs to be smart and specific—highlighting hurricane coverage in Florida or wildfire protection in California, for example—to really connect with local consumers.
Looking beyond these heavy-weight states, places like Illinois and Georgia offer a chance to expand without facing as much competition. These “second tier” markets can be strong stepping stones for growth, offering stability if a brokerage wants to avoid too much risk tied to just one or two big states.
California comes out on top in terms of direct premiums collected, earning over $94 billion, followed by Florida with $71 billion and Texas with $59 billion. New York is notable for generating $45 billion in premiums with fewer than 100,000 agents, showing it can balance agent numbers and revenue well.
When looking at premiums earned per agent, smaller states shine. Montana leads with about $3.6 million per agent despite having just 2,503 agents in total. Alabama and Arkansas also show strong productivity, with averages of $3.3 million and $2.9 million per agent respectively. On the other hand, states like Florida and Texas, with many agents, have lower premiums per individual agent. New York stands out again as a state that ranks highly in both total premiums and premiums per agent.
These trends show the importance of balancing the number of agents with the market’s revenue potential. Small but efficient states offer useful benchmarks for measuring agent productivity. Marketing efforts should fit the market size—large states need broad, bold campaigns that cut through the noise, while smaller states can benefit from more personalized, cost-effective messages.
For brokers planning growth, this information is critical. Big states have lots of talent but also fierce competition and diluted productivity. Smaller states offer a tighter pool of agents but potentially stronger returns per agent. New York shows it’s possible to succeed by balancing size with efficiency.
The IBA Agent Insights Dashboard lets insurance professionals see these patterns clearly. It helps pinpoint where markets are crowded or wide open, analyze agent productivity, and find growing or underserved areas. Whether running marketing campaigns, recruiting agents, or scouting new offices, this data can guide smarter decisions.
Understanding where opportunities truly lie, beyond just counting agents or premiums, is key to thriving in today’s insurance market. Those who can use these insights will be better positioned to find success.