The independent agency channel is holding ground and showing slow, steady gains in lines of business penetration, including homeowners insurance, according to the Big “I” 2024 Market Share Report.
The annual Market Share Report compiles and analyzes property & casualty premium data from AM Best and provides insights for agencies and carriers on current market shares by distribution types. Based on 2023 data, this year’s report found that the independent agency channel places 62.2% of all p&c insurance written in the U.S., demonstrating the channel’s resilience amid the challenges posed by the hard market.
While the independent agency channel held steady in commercial lines, placing 87% of all commercial lines written premium, it grew its share of personal lines written premium—39% in 2023, up from 38% in 2022—continuing a trend of growth in personal lines over the past five years. Direct written premiums reached $952 billion in 2023, up from $861 billion in 2022.
Once again, independent agencies again saw gains in the homeowners line of business, up to 51% in 2023 from 50% in 2022, after writing 46% in 2021. Meanwhile, during the hard market, independent agencies continue to rely on surplus lines with a 9.3% utilization rate in 2023, continuing to grow from 9% in 2022 and 6% over the past five years. Private flood surplus lines in particular maintain popularity, with a 46% utilization rate in 2023, compared to 45% in 2022 and 42% over the past five years. This increase in surplus line utilization correlates 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,” says Charles Symington, Big “I” president & CEO. “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.”
The Market Share Report is free for Big “I” members and states associations. To order or purchase a copy of the complete 2024 Market Share Report, visit the Big “I” Market Share Report webpage.