​The number of independent insurance agencies has remained stable, the system as a whole is dynamic and business conditions continue to improve, according to the 2014 Agency Universe Study (AUS). 

Future One, a collaboration of the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) and leading independent agency companies, has released key findings from the recently completed, most comprehensive look at the independent agency system.

The study looks at many statistics about independent agencies operating in the U.S. including their numbers, revenue base and sources, number of employees, ownership, mix of business, diversification of products, technology uses, non-insurance income sources and marketing methods.  

Key findings of the 2014 Agency Universe Study include:

• The number of independent agencies is stable. After declining from 44,000 in 1996 to 37,500 in 2006 and remaining stable at 37,500 between 2006 and 2010, the number of independent agencies grew to 38,500 by 2012. In 2014, the estimated total number of agencies remains the same: 38,500. 
  
• Better business conditions. Business conditions continued to improve between 2012 and 2014, as they had between the 2010 and 2012 studies. In 2014, 70% reported increased revenue (for 2013 compared to 2012), compared to 60% in the 2012 study.
  
• Many agencies saw increased revenues in both personal lines and commercial lines.
• Progress in efforts in marketing to a more diverse clientele. Smaller agencies appear to be more focused on serving specific market populations, with nearly half indicating that they focus a portion of marketing efforts on Gen X, Millennial and Hispanic markets.
  
• Social media pros and cons. Agencies are starting to incorporate social media strategies into their marketing, but encountering some challenges. In 2013, 43% of agencies included social media in their marketing activities, primarily to build brand equity among prospects and customers. At the same time, 21% of agencies indicate that marketing the agency effectively on the internet is their top technological challenge (and 46% rank it among their top three challenges).

Learn more or order a copy of the 2014 Agency Universe Study Management Summary.​

The Agency Universe Study surveys a wealth of issues about independent agencies operating in the U.S. including their numbers, revenue base and sources, number of employees, ownership, mix of business, diversification of products, technology uses, non-insurance income sources, and marketing methods.​ Learn more at iiaba.net​