Insurance Agent Ranks Steady

The challenging economy and the soft insurance market have taken their toll, and consolidation continues to impact distribution, but the independent insurance agency system is alive and well.  While consolidation continues to reduce the number of independent agencies, insurance agents continue to demonstrate their entrepreneurial nature by starting new agencies and brokers at a steady clip.  According to a new study (see here & here), the number of independent agencies has remained steady – there is approximately the same number of agencies today as there were in 2006 - 37,500.  Approximately 11 percent or 4,000 of today's independent agencies were started within the last three years.  The 2010 Agency Universe Study (AUS) was conducted by Future One, a collaboration of the Independent Insurance Agents & Brokers of America and insurance companies working with independent agencies.

Of note, the cost of technology has become less of a critical issue for independent agencies. This may be because robust web-based agency systems are available at low cost for small and new independent agents.

This bodes well for insurance entrepreneurs.  At the worst point in the cycle, with sales challenges high and valuations low, a large number of new agents and brokers are getting off the ground successfully.

Specialty Insurance Expertise: Tennant Risk Services
Supporting Insurance Entrepreneurship: Tennant Capital Partners

Comments

[Andrew]

As an independent insurance agent I know first hand it is a very difficult business. Being independent does have its advantage with the massive amount of products I can offer however given these times inflation is killing the agent. Rate increases are happening and it is very difficult to keep your customers/ residuals.

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Thanks for the information. I like reading your blog and it's always interesting to learn something new about the insurance.

[Low Cost Life Insurance]

Thanks for showing interesting statistics, technology is making insurance market rapidly increasing day by day.

[Insurance Quotes]

Nice post, I definitely agree that the low cost technology for web-based systems is making it much easier for new agents to become successful.

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Nice post, I definitely agree that the low cost technology for web-based systems is making it much easier for new agents to become successful.

[health funds]

It is good to know that recession has not negatively affected the insurance agents. As you have mentioned in your post I think this is mainly due to the availability of low cost technology for independent agents. It is interesting to see how these agents will function during the next decade. I believe it will be a fiercely competitive market.

[life insurance company]

Great article, this is a useful information, I think that everyone should really know about this. Thanks for sharing.

[Socorro Sultan]

very good post. sounds interesting.

[Insurance Agent Shreveport]

Great information... the lower cost technology has really helped all of us agents.

[Jacey Thomas]

Many Insurance Agent are out there in market. We need some high ranked and more reliable agents who are with high Rank and work for not just for commission. Good wrap-up.

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[sydney blepharoplasty surgery]

It is really tough nowadays for insurance companies to stand their ground. Nice blog

[Online car insurance]

Well explained article. Everyone must go for insurance and have a safe life.

[Insurance Information UK]

Now insurance has become a part of everyone's life and i like your article about insurance and its policies

[Life Insurance Atlanta]

I enjoy reading your post. Many agents are starting their own insurance business due to competitions with other agents.

[francis]

It's a good field to move into. it seems like insurance don't know what recession is. I'm loving it.

[Munster]

Nice blog,

I really enjoyed reading this article, especially the second paragraph caught my attention. Please keep writing I'm a big fan of your blog.

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[health insurance]

It is important for everyone to have health insurance. This will provide security not just for us but also for our loved ones in our everyday lives.

[Sam O]

Nice post, I definitely agree that the low cost technology for web-based systems is making it much easier for new agents to become successful.

[Monument Commercial Insurance Agency]

Very interesting statistics, we fall into the far end of that spectrum. Founded the beginning of 2007, we will be starting our fifth year in January.

[sandy]

great article