It would appear reports of the demise of the independent agent have been greatly exaggerated: A new survey shows the independent-agency system is growing again and is financially healthier than it has been in the past several years.
Future One—a collaboration of the Independent Insurance Agents & Brokers of America (IIABA) and a coalition of insurance carriers that distribute through independent agents—announced the release of its biannual Agency Universe Study for 2012, showing that the number of independent agencies has grown to 38,500, up from 37,500 reported in the surveys from 2006 to 2010. (The number of agencies reached 44,000 in 1996 before declining in subsequent surveys.)
Business conditions also improved for the majority of agencies in the latest survey, with 60 percent reporting increased revenues in the 2012 study compared to 40 percent in 2010.
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; noninsurance 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 IIABA President & CEO Robert Rusbuldt.
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 notes 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 and transgender community.
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 as well as Allied Insurance, Allstate, Amerisure Insurance, Central Insurance Cos., Chubb Group of Insurance Cos., CNA, Encompass, The Hanover Insurance Group, The Hartford, Liberty Mutual Insurance, Progressive, Selective Insurance Group, State Auto Insurance Cos., Travelers and Westfield Insurance.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
