It’s an interesting time to run an independent insurance agency. Technology is changing, the insurance market is changing, customer expectations are changing… it’s hard to think of anything that’s not changing. Catch up on the latest trends so you can navigate the challenges and seize the opportunities.
Independent Agency Market Share
According to IBISWorld, there were 430,059 insurance brokers and agencies in the U.S. in 2025. Between 2020 and 2025, the number of agencies has grown at a slow but steady pace of 1.6% per year on average.
While that’s a huge number, it includes a wide range of agencies and brokerages. It’s estimated that the number of independent property and casualty agencies is somewhere between 35,000 and 40,000.
These agencies are responsible for a substantial volume of premium. According to the Big “I” 2025 Market Share Report, in 2024, the independent agency channel placed 61.5% of all property and casualty insurance written in the U.S. This is a slight decrease from 2023, but it’s right on track with the five-year average of 61.3%.
There’s a significant difference between commercial and personal lines. In commercial lines, independent insurance agencies place 87.2% of all written premiums, however in personal lines, they place only 39% of all written premiums.
What does this mean for your agency?
If you were worried about the strength of the independent insurance agency model, this data should be reassuring. Despite the rise of direct channels and the ease of online shopping, many people still depend on independent insurance agencies for coverage. Businesses in particular are likely to count on independent insurance agents for coverage guidance, and agencies that sell commercial lines will benefit from this.
Insurance Premium and Shopping Trends
After years of rising rates and tight capacity, the commercial property and casualty insurance market is softening. In its Q4 2025 P&C Market Survey, The Council of Insurance Agents & Brokers says rates were nearly flat with an increase of just 0.2%, and rate decreases were common in many lines.
Bankrate reports that homeowners insurance rate increases have also slowed. However, rates could rise again with pressure from labor shortages, tariffs, and extreme weather. Auto insurance rates have also gone up in recent years. Bankrate reports that the average cost of full auto coverage has increased by about 12% since 2024.
Many policyholders are looking for lower rates. The LexisNexis U.S. Insurance Demand Meter for Q4 2025 showed that auto insurance shopping and new business growth were “hot” and breaking records.
What does this mean for your agency?
For independent insurance agencies, maintaining high levels of customer satisfaction can be challenging right now. Policyholders are concerned about rising prices, and even though market conditions are outside of your control, this can affect how your clients feel about your service. They may have higher expectations because they are paying higher rates. At the same time, increased insurance shopping activity may mean that extra market share is up for grabs, and you might be able to leverage this opportunity to grow.
Insurance Agent Technology Adoption
If you’ve been experimenting with AI, you’re not alone. Many agents are testing different tools and trying to figure out how they could help with operational efficiency.
According to the ACT Tech Trends Report, 2025 was a tipping point for AI adoption, and most agencies are planning to increase their use of AI. However, right now, only 8.5% have embedded AI in their daily workflows, while 30.7% of agencies aren’t using AI yet, and 32.8% are just experimenting with it.
Agents also have concerns about AI. The study found that 24.1% of agents are worried about data privacy and compliance, 22.5% are worried about the accuracy of AI outputs, and 17.7% worry they’ll lose the human touch.
What does this mean for your agency?
Right now, there’s a lot of pressure to adopt AI and to do so quickly. For agencies experiencing staffing or budget challenges, and for agents dealing with heavy workloads and burnout, the potential for increased efficiency is incredibly attractive. You may also be worried about falling behind if your competition adopts AI faster than you. At the same time, there are risks to consider, so agents need to be thoughtful and strategic about the tools they adopt.
Do You Need Help Navigating the Independent Insurance Agency Landscape?
Navigating today’s insurance landscape requires more than market access. It takes the right partners, the right tools, and a strategy built for what’s next. Agencies in the Heffernan Network are equipped to compete and grow with confidence. Find out how we can support your agency’s next chapter.
