An updated study shows that the ranks of independent insurance agencies are growing. Conventional wisdom says that agency consolidation, economic conditions and challenges running small insurance agencies are resulting in a decline in the number of insurance agencies. According to this study, the conventional wisdom is wrong.
The 2012 Agency Universe Study (see here), previously done in 2010 (see prior post), concludes that the number of independent agencies has actually increased:
- After declining from 44,000 in 1996 to 37,500 in 2006, the number of independent agencies has grown to 38,500 in the past two years.
- Not only is the number of agencies growing, but agencies themselves are growing. Business conditions for independent agencies improved between the 2010 and 2012 studies.
- Systems and data security are now the most important technology challenges facing agencies.
- Agencies are beginning to use the Internet more to obtain new customers.
The independent insurance agency system is alive and well.
Specialty Insurance Expertise: Tennant Risk Services
Supporting Insurance Entrepreneurship: Tennant Capital Partners
