What's Happening?
The Big 'I' trade association's 2025 Market Share Report reveals that independent agencies placed 61.5% of all property/casualty insurance written in the U.S. in 2024, a slight decline from 62.2% in 2023. Despite challenges from the hard market, independent agencies maintained a steady five-year average of 61.3% in P/C coverages. The report highlights that independent agencies wrote 87.2% of commercial lines premiums, consistent with the previous year, while personal lines saw growth opportunities with a slight increase in market share. The report also notes significant premium growth due to hard market conditions, with direct written premiums for total P/C business reaching $1.05 trillion in 2024.
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Why It's Important?
The report underscores the resilience of independent agencies in navigating a challenging insurance market. Their strong presence in commercial lines suggests stability and reliability in this sector, while the growth in personal lines indicates potential for expansion. This dynamic could influence strategic decisions for agencies and carriers, impacting how they allocate resources and develop new products. The findings also highlight the importance of independent agencies in providing personalized services and choices to consumers, reinforcing their role as key partners in the insurance distribution channel.
Beyond the Headlines
The report's insights into surplus lines and commission rates offer a deeper understanding of market dynamics. The growth in private flood insurance utilization and the variation in commission rates across states and lines of business reflect broader trends in consumer preferences and agency operations. These factors could drive long-term shifts in how insurance products are marketed and sold, influencing the competitive landscape and regulatory considerations.
