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.
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Hoping the ACA exchanges do not hurt agents working across the country. Time will tell how good or bad this affects those already in the industry and what changes will need to be made to adapt to the coming changes.
Posted by: Cameron Insurance | December 24, 2012 at 09:42 AM
Thanks for sharing.I got a lot of ideas from your post.
Posted by: Insurance | December 23, 2012 at 10:17 PM
How do you think Obamacare will effect insurance agents across the country? With states being required to have federal exchanges, this could effect our industry in a negative way in agents losing customers to these exchanges, or it could open up a broader market for agents if the exchanges can't offer the same quality service.
Posted by: Cameron Insurance | December 17, 2012 at 12:22 PM
Thank you so much for posting this information about insurance agencies. I didn't know they were growing so much! Where can I find more information on this? I'd like to do some research. Is the insurance agencies in calgary growing? Thank you for your help!
Posted by: dorthypacker | November 30, 2012 at 02:38 PM
Great news indeed! This goes to show that independent insurance agency system is once again starting to gain the public trust after declining and being involve to some controversies in the past. All we need to do is prove the public, one of our biggest stake holders that trusting our companies is all they need to do in time of financial unpreparedness and disasters this new is a great boost in our industry.
Posted by: Memphis Auto Insurance Agent | November 06, 2012 at 02:46 AM
Social media have been helpful in business for most people. The growth of these lending companies is given credit not only on their modern and acceptable approach, but also on the aid of the cyber world.
Posted by: insurance company | October 28, 2012 at 07:37 AM
I am an independent agent and my agency has seen a nice growth pattern this year. Nice to know independent agencies are on the rise.
Posted by: Jim | October 27, 2012 at 04:18 PM
Posted by: JCG New Media | October 23, 2012 at 12:28 PM