The independent agency channel maintained its share across key insurance lines in 2024 and saw improvement in underwriting performance, according to the Big “I” 2025 Market Share Report.
In 2024, independent agencies accounted for 61.5% of total P&C premiums written in the US, a slight decrease from 62.2% the previous year. The five-year average remains largely unchanged at 61.3%, suggesting stability in the channel’s overall share despite the hard market.
Research from the prior year revealed that there were approximately 39,000 such agencies nationwide, down from around 40,000 in 2022. Industry analysts attributed the drop to trends in mergers and acquisitions, aging ownership, and succession planning challenges.
By line of business, independent agencies placed 87.2% of commercial lines premiums in 2024, nearly level with 87.3% in 2023. In personal lines, their share rose to 39%, up from 38.7% the previous year and continuing growth from 35.7% in 2020. Total direct written premiums increased to $1.05 trillion in 2024, compared to $952 billion in 2023.
Despite a challenging claims environment – including $113 billion in insured U.S. catastrophe losses, based on Aon data – the P&C sector reported improved underwriting results. Direct written premiums rose 9.6% in 2024, which coincided with a combined ratio of 92%, compared to 96% in 2023 and 98% in 2022.
Lines with the highest combined loss ratios included federal flood at 278%, private crop at 127%, and multi-peril crop at 109%.
Surplus lines usage among independent agencies continued to increase, with a 9.7% utilization rate in 2024, up from 9.4% the year prior and above the five-year average of 8.7%. Private flood insurance followed a similar pattern, with agency utilization at 50.6%, up from 46% in 2023 and above the five-year average of 44.9%.
Charles Symington (pictured above), president and CEO of the Big “I,” said that the report results show how agencies have adjusted in recent years to meet client needs.
“In a complicated and fast-evolving market, the personalization, choices and education that independent agents provide are crucial, proving once again their role as key partners in the insurance distribution channel,” Symington said.
A separate survey conducted by Trusted Choice and the Big “I” highlighted how agencies are responding to prolonged hard-market conditions. Among respondents, 65% said they had increased the frequency and depth of communication with policyholders.
Larger agencies – those with more than $500,000 in annual revenue – were more likely to have invested in new technologies, with 45% reporting tech upgrades compared to 32% of smaller agencies.
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