Concerning ethnic diversity, the number of new small (revenues of less than $150,000) and medium-small (revenues of less than $500,000) agencies with minority principals remained unchanged from 2010. That year marked an increase in the number of those agencies, especially agencies owned by African-Americans which grew from 1 percent of all agencies to 4 percent in 2010.

The study, which surveyed 2,500 agencies, examines revenue base and sources, number of employees, ownership, mix of business, diversification of products, technology uses, non-insurance income sources and marketing methods for independent agents.

“The 2012 Agency Universe Study revealed much good news for the independent-agency system, including an increase in the total estimated number of independent agencies, and there are patterns indicating that agencies are growing, adding further proof that the system as a whole is dynamic,” says Robert Rusbuldt, IIABA president and chief executive officer in a statement.

He adds that the survey results are “great news” for independent agents “reflecting a stable and growing distribution system” that remains “resilient” in the face of economic challenges.

Madelyn Flannagan, IIABA vice president of agent development, education and research, says the survey found that agents are focusing on marketing “to a more diverse clientele and developing a more diverse staff.”

She says that half of independent agencies say they have developed plans to meet the needs of emerging markets, including women, ethnic markets and the lesbian, gay, bisexual, transgender community.

One consultant to independent agents found the growth in the number of agencies surprising.

Al Diamond, president of Cherry Hill, N.J.-based Agency Consulting Group, Inc. says, “It isn't that we are losing people, but we are losing entities; not because they are failing, but because they are getting older and they don't have good succession planning.”

He adds, “Eventually, they merge and sell and cluster with others. So it is a little surprising that [the number of agencies] didn't go down.”

He says the increase may be due, in part, to more captive agents moving onto the independent-agency system.

“I'm happily surprised,” says Diamond. “I think it's great. I'll stay in business for a while.”

The report, which has been produced since 1983, will be available in E-Version for $79 beginning Nov. 1.

The survey was sponsored by the IIABA and the following companies:

• Allied Insurance

• Allstate

• Amerisure Insurance

• Central Insurance Companies

• Chub Group of Insurance Companies

• CNA

• Encompass

• The Hanover Insurance Group

•The Hartford

• Liberty Mutual Insurance

• Progressive

• Selective Insurance Group

• State Auto Insurance Companies

• Travelers

• Westfield Insurance