Independent agencies hold strong amid hard market
Independent agencies hold strong amid hard market | Insurance Business America
Insurance News
Independent agencies hold strong amid hard market
Big “I” report shows stability—and even growth—in 2024
Insurance News
By
Mav Rodriguez
Despite the challenges posed by a hard market, the independent agency sector has maintained its market presence and achieved gradual growth in various business lines as detailed in the Big “I” 2024 Market Share Report.
The 2024 report reveals that the independent agency channel accounts for 62.2% of all P&C insurance written in the US.
In commercial lines, the independent agency channel held steady, placing 87% of all commercial lines written premium. In personal lines, the channel’s share increased to 39% in 2023 from 38% in 2022, continuing a five-year growth trend. Direct written premiums rose to $952 billion in 2023, which is up from $861 billion in 2022.
Independent agencies saw further gains in the homeowners’ insurance sector, increasing to 51% in 2023 from 50% in 2022, and 46% in 2021. During the hard market, agencies continued to rely on surplus lines, with a 9.3% utilization rate in 2023, up from 9% in 2022 and 6% over the past five years.
Private flood surplus lines remained popular, with a 46% utilization rate in 2023, compared to 45% in 2022 and 42% over the past five years. This trend in surplus line utilization is linked to a hardening market and carrier withdrawals.
“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,” Big “I” CEO Charles Symington said.
“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.”
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