Insurance Agencies & Brokerages

The 120,434 insurance agencies and brokerages in the US act as the “sales arm” of the insurance industry. Insurance agencies represent insurance carriers and sell policies to customers looking to minimize risks. “Captive” agents are affiliated with a single carrier. Independent agents may represent a variety of carriers. Brokers represent customers, and work with multiple carriers to determine the policy that best fits customer needs.

Cyclical Sales

The insurance industry is cyclical and premiums vary considerably depending on market conditions.

Government Regulation

Government regulation can affect insurance premiums, coverage, and commissions.

Oct 21, 2026 - Rising Insurance Costs Put Pressure on Agents

• Rising homeowners insurance costs have become an issue in the 2026 midterm elections, putting additional pressure on insurance agencies and brokers to help customers find affordable coverage. According to a Federal Reserve survey, 6% of homeowners went without insurance in 2025, primarily because of cost, while 20% of insured homeowners said they couldn't afford their desired level of coverage. States including Florida, California, and Texas are pursuing reforms to improve affordability and availability, but progress remains uneven. Florida's state-backed Citizens Property Insurance is reducing homeowners rates by an average of 8.8% in 2026, while Texas officials report that average premiums have risen 79% over six years. Agents face growing demands from cost-conscious customers seeking lower premiums, sometimes at the expense of adequate protection. Political promises of rate relief could further complicate renewal discussions, particularly as elevated repair and replacement costs continue to drive premiums higher.
• A flood of investment capital and a relatively quiet stretch for natural disasters are putting downward pressure on insurance prices, raising concerns about the industry's ability to sustain its recent strong profits. According to The Wall Street Journal, Hurricane Isaias is unlikely to cause enough insured losses to reverse that trend, with preliminary estimates suggesting damages in the single-digit billions. Global reinsurance capital reached a record $690 billion in the first half of 2026, according to Gallagher Re, as investors chased attractive returns following several years of lighter-than-expected catastrophe losses. That abundance of capital has intensified competition and given insurers greater leverage to negotiate lower reinsurance rates. Gallagher Re estimates that the industry would need roughly $100 billion in additional catastrophe losses beyond a typical year's expectations to significantly change pricing trends. Meanwhile, analysts warn that current insurance industry profits may prove difficult to sustain.
• US property and casualty insurers nearly tripled their net underwriting income to about $31 billion in the first half of 2026, according to AM Best, as the business of writing insurance became considerably more profitable. The industry’s combined ratio improved four percentage points to 92.5, meaning insurers kept a healthier cushion between the premiums they collected and what they spent on claims and expenses. That helped push overall net income up more than 50% to roughly $78 billion. What makes the results more striking is that premium growth actually slowed: net written premiums increased just 2.1%, compared with 5.2% a year earlier. The newfound breathing room is already bringing more competition to commercial property, where insurers have more capacity and pricing has begun to fall. Commercial auto and umbrella coverage remain tougher territory as claims costs stay elevated.
• Independent insurance agencies remain the dominant force in commercial insurance and are gaining ground with consumers. According to the Big “I” 2026 Market Share Report, independent agents placed 62% of all US property and casualty premiums in 2025, up slightly from 61.5% a year earlier. Their position is particularly strong in commercial lines, where independent agencies wrote 87% of premiums. They are also making gradual gains in personal lines, with their share reaching 39%, up from 36% in 2021. Customers continue to turn to independent agents to compare carriers, navigate coverage restrictions, and find specialty coverage. Meanwhile, agency networks are giving smaller firms greater access to carriers and technology that once favored larger brokerages, allowing them to gain some benefits of scale while remaining independent.

Industry size & Structure

A typical insurance agency or brokerage operates out of a single location, employs about 7 workers, and generates $1.9 million annually.

• The insurance agency and brokerage industry includes about 120,435 companies that employ about 829,815 workers and generate about $232.2 billion annually.
• Direct writers account for about 37% of personal P/C insurance sales, while agency writers account for 62% of commercial P/C insurance sales.
• Independent agents account for 53% of new life insurance sales, captive agents account for 38%, while direct marketers and others (such as stockbrokers) make up the rest.
• The industry is highly concentrated with the top 50 firms accounting for 37% of industry sales.
• Large companies include Marsh & McLennan Companies, Aon Corporation, and Arthur J. Gallagher.