SOLIDGROUND

most comprehensive look at the independent agency system. The 2022 iteration of the study marked a triumph in agency adaptability in the face of adversity.

“As the independent agency channel recovers from the coronavirus pandemic and weathers economic uncertainties, technology adoption continues to prove itself critical to continued success," says Chris Boggs, Big “I" vice president of agent development, education and research. “Agencies are demonstrating flexibility and progress in digitalization as the insurance industry works together to incorporate tech solutions that support agents' roles as trusted advisers."

Here are six findings from the 2022 Agency Universe Study:

1) The number of independent agencies increased. In 2022, the estimated total number of independent property-casualty agents and brokers in the U.S. stood at 40,000, an increase from 36,000 in 2020. While mergers & acquisitions

Continued from page 14 activity continued to impact the agency channel, the increase in the number of agencies was driven by small agencies, as agents established their own agencies or moved from the captive to independent space.

2) Business conditions were generally favorable. The majority of agencies 62% reported increases in total revenue between 2020 and 2021, but this proportion was lower than the 70% in 2020. Twenty-five percent reported a decline in revenue, with an average decrease of 22%. In particular, fewer agencies reported personal lines revenue increases in 2022, 60% compared to 67% in 2020. More than 1 in 5 said the pandemic impacted their operations and revenue.

3) Technology has become a crucial part of operations and customer service. Nearly half (47%) said they have offered more digital solutions to clients due to the pandemic. Usage of mobile apps from carriers increased to 40%, up from 32% in 2020, and apps for clients doubled, now 20% up from 10%.