Independent agencies hold their ground despite tough markets | Insurance business America
The capital “I” report shows stability – and even growth – in 2024
Insurance News
By Mav Rodriguez
Despite the challenges presented by a tough market, the independent agency sector has maintained its market presence and achieved incremental growth across various business areas, as outlined in the Big “I” 2024 Market Share Report.
The 2024 report shows that the independent agency channel accounts for 62.2% of all property and casualty insurance written in the United States.
In the commercial sector, the independent agency channel remained stable, generating rewards for 87% of all premiums booked in the commercial sector. In the private customer segment, the broadcaster’s share increased from 38% in 2022 to 39% in 2023, continuing its five-year growth trend. Direct written premiums increased to $952 billion in 2023, up from $861 billion in 2022.
Independent agencies continued to see increases in the home insurance sector, increasing from 50% in 2022 to 51% in 2023 and 46% in 2021. During the tough market, agencies continued to rely on excess insurance lines, with a utilization rate of 9.3% in 2023 , an increase of 9% in 2022 and 6% in the last five years.
Private flood lines remained popular, with an utilization rate of 46% in 2023, compared to 45% in 2022 and 42% over the past five years. This trend towards overload utilization is associated with a hardening market and operator withdrawals.
“Despite the significant challenges presented by the tough market, independent agency market shares have remained stable and even continued to grow in key verticals – a testament to the strength of the independent agency channel,” said Charles Symington, CEO of Big I”.
“In this current environment, choice is more important than ever for customers, and independent brokers continue to prove themselves as trusted advisors to their customers and indispensable partners in the insurance marketplace.”
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2024-06-28 14:58:55
www.insurancebusinessmag.com
