The independent agency channel placed 61.5% of all property/casualty insurance written in the U.S. in 2024, a slight decline from 2023 where independent agents placed 62.2% of property/casualty lines nationwide.
That’s according to the 2025 Market Share Report published by the Independent Insurance Agents & Brokers of America (Big “I”) trade association. Independent agents (IAs) hold a steady five-year average of P/C coverages written at 61.3% despite the challenges of the hard market, the report noted.
The annual report compiles and analyzes property & casualty premium data from AM Best and provides insights for agencies and carriers on current market shares by distribution types.
Overall, the independent agency channel held steady in both commercial and personal lines business written in 2024.Independent agencies wrote 87.2% of commercial lines written premiums, consistent with 87.3% in 2023. But in personal lines, opportunities for independent agency channel growth remain.
According to the study, independent agents wrote 39% of personal lines written premiums in 2024, compared to 38.7% in 2023. The good news: independent agents have continued to retain gains in personal lines market share from 2020 when IAs helped about 35.7% of the market.
The state with the highest independent agent penetration rate in the U.S. was Massachusetts (78.8%), and the state with the lowest rate was Alaska (51.4%), the study revealed.
By line of business, the top penetration rates were: International (100.0%), Multi-Peril Crop (96.9%), and Private Crop (96.4%). The lowest penetration rates were: Financial Guaranty (4%), Mortgage Guaranty (14%), and All Private Passenger Auto (32%) with Farmowners Multi-Peril (40%) and Warranty (40%) following.
The hard market led to additional premium growth as direct written premiums for total P/C business reached $1.05 trillion in 2024, up from $952 billion in 2023.
The Big “I” said that despite loss factors continuing to impact the P/C market—including $113 billion in insured natural catastrophe losses in the U.S., according to Aon—direct written premium increases of 9.6% in 2024 resulted in combined ratios of 92% for 2024, down from 96% in 2023 and 98% in 2022.
The highest average loss ratios occurred in Federal Flood at 278.8%, Private Crop at 93.0% and Multi-Peril Crop at 85.9%.
“The hard market conditions of the last few years have presented independent agencies across the country with significant challenges, but the results of the 2025 Market Share Report demonstrate agencies’ ability to adapt to serve their communities,” said Charles Symington, Big “I” president & CEO, in a statement. “In a complicated and fast-evolving market, the personalization, choices and education that independent agents provide are crucial, proving once again their role as key partners in the insurance distribution channel.”
Other Findings
Surplus Lines. In the United States in 2024, the percentage of premiums going to Surplus Lines Domestic insurers was 9.7%, up from 9.4% in 2023, and 7.0% in 2020. The five-year average is 8.7%, the report said. Nationwide, the top three Lines of Business with premiums going to Surplus Lines insurers were: Other Liability (Occurrence), Other Liability (Claimsmade), and Fire Peril Only
Flood. Private flood continued its growth at a 50.6% utilization rate, up from 46% in 2023 and 44.9% over the past five years.
Commissions. The average Commission Rate in United States in 2024 was 11.5% for all P/C Lines of Business combined. The highest average Commission Rate was 13.6% (Massachusetts), and the lowest was 10.1% (Delaware). The highest average Commission Rate by line of business were Surety at 27%, Burglary & Theft at 20% and Private Crop at 19%. Three different lines of business showed the lowest average Commission Rates, including All Private Passenger Auto, Excess Workers’ Comp, and Multi-Peril Crop – all averages of 8%.
