The independent insurance agency channel accounted for 61.5% of all property and casualty insurance written in the U.S. in 2024, showing a slight dip from 62.2% in 2023. This data comes from the 2025 Market Share Report released by the Big “I” trade association, which tracks the role of independent agents in the insurance market.
Despite the small decline, independent agents have maintained a steady presence, averaging 61.3% of the market over the last five years even amid a hard insurance market. They hold a strong lead in commercial lines, writing 87.2% of commercial insurance premiums in 2024, nearly unchanged from 87.3% the year before. However, there’s room for growth on the personal lines side. Independent agents saw their share of personal insurance premiums rise slightly to 39% last year, up from 38.7% in 2023 and a notable increase from just 35.7% in 2020.
Massachusetts stands out with the highest rate of independent agent penetration at nearly 79%, while Alaska has the lowest at just over 51%, according to the study. When looking at specific types of insurance, independent agents dominate some areas completely, such as international insurance at 100% and multi-peril crop insurance at nearly 97%. On the other hand, they have less market share in financial guaranty insurance (4%), mortgage guaranty (14%), and private passenger auto insurance (32%).
The hard market conditions contributed to an increase in premiums nationwide, with total direct written premiums reaching $1.05 trillion in 2024, up from $952 billion in 2023. Despite ongoing challenges like $113 billion in insured natural disaster losses reported by Aon, the market saw premium growth of 9.6% last year and improved combined ratios—92% in 2024 compared to 96% in 2023.
Some lines of insurance faced higher loss ratios, including federal flood insurance with a loss ratio of nearly 279%, private crop insurance at 93%, and multi-peril crop at about 86%. This reflects ongoing challenges for agents working in these areas.
The report also highlights trends in surplus lines insurance, which grew to 9.7% of premiums in 2024, up from 9.4% the year before. Private flood insurance usage also climbed, with a 50.6% utilization rate, marking steady growth over recent years.
Commission rates for independent agents averaged 11.5% across all property and casualty lines, with the highest rate seen in Massachusetts at 13.6% and the lowest in Delaware at 10.1%. Some lines, like surety insurance, offered the highest commissions at 27%, while others like private passenger auto and excess workers’ compensation hovered at 8%.
Charles Symington, president and CEO of the Big “I,” noted the resilience of independent agencies, saying that the market’s ups and downs have tested them but they continue to find ways to serve their communities well. He also emphasized the important role independent agents play by offering personal service and guidance in a changing insurance market.
The full 2025 Market Share Report is available to Big “I” members and state associations, providing detailed insights into how independent agencies continue to hold their ground and adapt.