The report uses data supplied by Oldwick, N.J.- based A.M. Best Company to determine independent producers' market share.

According to IIAA, headquartered in Alexandria, Va., independent agents saw their commercial lines market share drop slightly from 73.55 to 73.25 percent of the market. Captive agents' share of the market declined from 26 to 25 percent. Direct writers' share increased to almost 1.5 percent.

In the seven states of Massachusetts, Rhode Island, Connecticut, Maryland, Pennsylvania, Illinois, Hawaii and the District of Columbia, independent agencies write 80 percent or more of commercial lines. Massachusetts lead the group at 85 percent. However, in 11 states, Arizona, California, Vermont, Arkansas, Oregon, Montana, Michigan, Utah, Delaware, Colorado, Idaho, agencies write between 55 to 70 percent of the market, IIAA said, leaving plenty of opportunity available.

IIAA said the direct writers' increase was attributable to the inclusion of GE Capital Insurance Group as a direct writer.

The figures are a relief for independent producers when compared to last year's report, which showed agents losing ground. Last year's report examined market shares from 1997 to 1999. It showed agents' had lost three percentage points in market share, which was gained by captives.

Personal lines saw only slight changes from 1999 to 2000.

Independent agencies' market share of personal lines rose from 33.4 in 1999 to 33.7 percent in 2000. The percentage for captive agents dropped from 58.8 percent in 1999 to 57.8 percent in 2000, while direct writers increased their share from 7.9 percent in 1999 to 8.5 percent of the market in 2000.

The more significant change in personal lines was seen in homeowners insurance. Independent agencies held 36.8 percent of the market in 2000 compared to 35.7 percent in 1999. Captives saw their market share drop from 60 percent in 1999 to 58 percent in 2000. Direct writers remained steady at a little more than 4 percent of market share.

However, the results varied by state. In Massachusetts, for example, independent agencies managed to dominate most of the personal lines market in 2000, with a 78 percent share.

IIAA said it would post the report on www.independentagent.com.