Independent insurance agency statistics (2026).

Where a source covers only top-performing agencies, the figure is marked selection bias: it describes leaders, not the typical agency. Sections: agency economics, retention & growth, producer compensation, contingents & records, market share.

Agency economics

1. 37,0002026

   The 2026 Agency Universe Study puts the number of independent insurance agencies in the U.S. at 37,000, a slight dip from two years earlier.

   Source: IA Magazine, “Evolving Channel: Key Findings From the 2026 Agency Universe Study”, by Will Jones, October 1, 2026 (Future One / Big “I” with Zeldis Research). Lapidar verified on 12 October 2026.

2. 3 in 42024–2025

   As many as three in four independent agencies saw revenue increase between 2024 and 2025.

   Source: IA Magazine, “Evolving Channel: Key Findings From the 2026 Agency Universe Study”, by Will Jones, October 1, 2026 (Future One / Big “I” with Zeldis Research). Lapidar verified on 12 October 2026.

3. 12% → 8%2024 → 2025

   The share of agencies reporting a revenue decline fell from 12% in 2024 to 8% in 2025.

   Source: IA Magazine, “Evolving Channel: Key Findings From the 2026 Agency Universe Study”, by Will Jones, October 1, 2026 (Future One / Big “I” with Zeldis Research). Lapidar verified on 12 October 2026.

4. 17.2 → 19.72024 → 2025

   Agencies held an average of 19.7 carrier appointments across all lines in 2025, up from 17.2 in 2024.

   Source: IA Magazine, “Evolving Channel: Key Findings From the 2026 Agency Universe Study”, by Will Jones, October 1, 2026 (Future One / Big “I” with Zeldis Research). Lapidar verified on 12 October 2026.

5. 46%2026

   Nearly half (46%) of independent agencies report using AI, up from 15% in 2024.

   Source: IA Magazine, “Evolving Channel: Key Findings From the 2026 Agency Universe Study”, by Will Jones, October 1, 2026 (Future One / Big “I” with Zeldis Research). Lapidar verified on 12 October 2026.

Retention & growth

1. 77.1% → 84.7%2025

   MarshBerry reports client retention rising from 77.1% for single-policy clients to 84.7% for clients with five or more policies.

   Source does not disclose the sample or period behind these retention rates.

   Source: MarshBerry, “Boost Retention and Revenue with Account Rounding Strategies”, by Jessica Orange and Bonnie Weise, April 17, 2025. Lapidar verified on 12 October 2026.

2. 50%2025

   MarshBerry writes that 50% of the average firm’s customers have only one policy with it.

   Source does not disclose the sample or period.

   Source: MarshBerry, “Boost Retention and Revenue with Account Rounding Strategies”, by Jessica Orange and Bonnie Weise, April 17, 2025. Lapidar verified on 12 October 2026.

3. $548,7052025

   In MarshBerry’s worked example, raising retention from 77.1% to 82.5% on a $5 million book adds $548,705 of revenue on the original policies over five years.

   An illustrative example, not a measured result.

   Source: MarshBerry, “Boost Retention and Revenue with Account Rounding Strategies”, by Jessica Orange and Bonnie Weise, April 17, 2025. Lapidar verified on 12 October 2026.

4. 6.2%–10.2%2026 update

   Organic growth at Best Practices agencies ranged from 6.2% to 10.2% across revenue categories, down from 8.7% to 11.3% in 2025.

   Selection bias: covers only agencies that qualified as 2025 Best Practices agencies, a group recognized for outstanding results, not the typical agency.

   Source: Big “I”, “Big ‘I’ and Reagan Consulting Release 2026 Best Practices Study Update”, August 12, 2026. Lapidar verified on 12 October 2026.

5. 23.2%–30.7%2026 update

   Pro forma EBITDA margins at Best Practices agencies ranged from 23.2% to 30.7% across revenue categories.

   Selection bias: covers only agencies that qualified as 2025 Best Practices agencies, a group recognized for outstanding results, not the typical agency.

   Source: Big “I”, “Big ‘I’ and Reagan Consulting Release 2026 Best Practices Study Update”, August 12, 2026. Lapidar verified on 12 October 2026.

Producer compensation

1. 0.0%–1.7%2026 update

   Net unvalidated producer payroll (NUPP) at Best Practices agencies ranged from 0.0% to 1.7% across revenue groups; the update calls 1.5%–2.0% a healthy investment.

   Selection bias: covers only agencies that qualified as 2025 Best Practices agencies, a group recognized for outstanding results, not the typical agency.

   Source: Big “I”, “Big ‘I’ and Reagan Consulting Release 2026 Best Practices Study Update”, August 12, 2026. Lapidar verified on 12 October 2026.

2. 50%2025

   One consultant writing for the Big “I” Virtual University says that historically the producer earned 50% of the agency commission and the agency kept the other 50%.

   One consultant’s description, not a survey.

   Source: Big “I” Virtual University, “Producer Compensation: A Base/Growth Model”, by Al Diamond, August 19, 2025. Lapidar verified on 12 October 2026.

3. 25% / 40%2025

   The same author writes that the most common base/growth producer commissions are 25% on the base book and 40% on growth.

   One consultant’s observation, not a survey.

   Source: Big “I” Virtual University, “Producer Compensation: A Base/Growth Model”, by Al Diamond, August 19, 2025. Lapidar verified on 12 October 2026.

Contingents & records

1. 5%–7%2026

   MarshBerry writes that contingent commissions can represent about 5%–7% of total annual revenue for many agencies.

   Source: MarshBerry, “How Agencies Can Proactively Maximize Contingency Revenue”, by Keith Captain, April 1, 2026. Lapidar verified on 12 October 2026.

2. 10%–15%2026

   For some top-performing firms, MarshBerry writes, contingents could account for as much as 10%–15% of total revenue in some years.

   Selection bias: applies to top-performing firms only, in some years.

   Source: MarshBerry, “How Agencies Can Proactively Maximize Contingency Revenue”, by Keith Captain, April 1, 2026. Lapidar verified on 12 October 2026.

3. Spring2026

   MarshBerry writes that contingent commissions are typically calculated on an annual basis and paid in the spring of the following year.

   Source: MarshBerry, “How Agencies Can Proactively Maximize Contingency Revenue”, by Keith Captain, April 1, 2026. Lapidar verified on 12 October 2026.

4. 3 / 6 years2026

   The IRS says to keep income tax records for 3 years, and 6 years if you don’t report income you should that is more than 25% of the gross income shown on your return.

   Source: Internal Revenue Service, “How long should I keep records?”, last updated June 30, 2026. Lapidar verified on 12 October 2026.

Market share

1. 62%2025

   The independent agency channel placed 62% of all P&C insurance written in the U.S. in 2025.

   Source: IA Magazine, “Big ‘I’ Releases 2026 Market Share Report”, by AnneMarie McPherson Spears, June 23, 2026 (AM Best data). Lapidar verified on 12 October 2026.

2. 87.7%2025

   Independent agencies wrote 87.7% of U.S. commercial lines written premium in 2025.

   Source: IA Magazine, “Big ‘I’ Releases 2026 Market Share Report”, by AnneMarie McPherson Spears, June 23, 2026 (AM Best data). Lapidar verified on 12 October 2026.

3. 39.5%2025

   The independent agency share of U.S. personal lines grew to 39.5% in 2025.

   Source: IA Magazine, “Big ‘I’ Releases 2026 Market Share Report”, by AnneMarie McPherson Spears, June 23, 2026 (AM Best data). Lapidar verified on 12 October 2026.

4. $115.4B2025

   Licensed insurers wrote $115.4 billion of direct P&C premium in California in 2025.

   Source: California Department of Insurance, 2025 California Property & Casualty Market Share Report. Lapidar verified on 12 October 2026.

5. 54.76%2025

   The ten largest P&C groups wrote 54.76% of California direct written premium in 2025; the largest, State Farm Group, had 9.89% (as shown in the department’s Top 25 report).

   Source: California Department of Insurance, 2025 California Property & Casualty Market Share Report. Lapidar verified on 12 October 2026.

6. 20.09%2025

   State Farm Group held 20.09% of California homeowners multiple peril direct written premium in 2025 (as shown in the department’s Top 25 report).

   Source: California Department of Insurance, 2025 California Property & Casualty Market Share Report. Lapidar verified on 12 October 2026.

Questions

How many independent insurance agencies are there in the U.S.?

The 2026 Agency Universe Study, reported by IA Magazine on October 1, 2026, puts the number at 37,000.

What share of P&C insurance do independent agents write?

According to the Big “I” 2026 Market Share Report, based on AM Best data, the independent agency channel placed 62% of all U.S. P&C insurance in 2025, including 87.7% of commercial lines and 39.5% of personal lines.

How much of agency revenue comes from contingent commissions?

MarshBerry writes that contingents can represent about 5%–7% of total annual revenue for many agencies, and as much as 10%–15% for some top-performing firms in some years.

How many carrier appointments does an independent agency have?

The 2026 Agency Universe Study reports an average of 19.7 carrier appointments across all lines in 2025, up from 17.2 in 2024.

Methodology

• A figure is included only if it appears on a free public page we can link to, and only after we re-opened that page and matched the exact number and wording on October 12, 2026. No statistic appears without a source.
• Figures are quoted as the source states them, with the source’s year. We don’t combine, adjust or extrapolate them; the California shares come from the department’s report and detail file and are checked against its published Top 25 rankings, as described on our P&C carriers by state page.
• Survey and consulting figures describe their own samples. The Best Practices Study covers high-performing agencies only, and MarshBerry does not publish the sample behind its retention figures; both are flagged under the figure.
• We quote short facts with a link and do not reproduce tables. Paid or member-only reports are not used.
• Lapidar sells commission reconciliation software to independent agencies. None of these figures come from Lapidar customers; we have none to report yet.

Sources

• Big “I” Virtual University, “Producer Compensation: A Base/Growth Model”, by Al Diamond, August 19, 2025. Retrieved October 12, 2026.
• Big “I”, “Big ‘I’ and Reagan Consulting Release 2026 Best Practices Study Update”, August 12, 2026. Retrieved October 12, 2026.
• California Department of Insurance, 2025 California Property & Casualty Market Share Report. Retrieved October 12, 2026.
• IA Magazine, “Big ‘I’ Releases 2026 Market Share Report”, by AnneMarie McPherson Spears, June 23, 2026 (AM Best data). Retrieved October 12, 2026.
• IA Magazine, “Evolving Channel: Key Findings From the 2026 Agency Universe Study”, by Will Jones, October 1, 2026 (Future One / Big “I” with Zeldis Research). Retrieved October 12, 2026.
• Internal Revenue Service, “How long should I keep records?”, last updated June 30, 2026. Retrieved October 12, 2026.
• MarshBerry, “Boost Retention and Revenue with Account Rounding Strategies”, by Jessica Orange and Bonnie Weise, April 17, 2025. Retrieved October 12, 2026.
• MarshBerry, “How Agencies Can Proactively Maximize Contingency Revenue”, by Keith Captain, April 1, 2026. Retrieved October 12, 2026.

Related: P&C insurance market share by state · Insurance agency KPIs · Insurance agency profit sharing · How to reconcile carrier commission statements