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.
- 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.