SOLIDGROUND

Yet, challenges with technology continued, with 41% of agencies cited dealing with multiple carrier interfaces as a challenge. While only 7% used a commercial lines rater, 23% planned to do so. Onethird saw the need for more carrier application programming interface (API) integration with agency management systems (AMS) and 51% sought more operating efficiencies to help service customers.

4) Principal aging remained stable. The average age of agency principals was 54 years old, with 17% age 66 or older. More than 8 in 10 agencies had a perpetuation plan, on par with 2020, but it often centered around children and family. Meanwhile, similar to 2020, 4 in 10 agencies anticipated some ownership change in the next five years.

5) Finding qualified staff and marketing were key agency challenges. Forty-one percent found it challenging to find and screen job candidates with strong potential, the No. 1 challenge of 2022, which gained slightly from 39% in 2020. The second most challenging issue was having a significant marketing or advertising budget at 36%, up from 30% in 2020.

6) Inclusion gains some ground. In 2022, 47% of agency principals were women, a gain from 42% in 2020, and 83% were white, compared to 88% in 2020. Medium-sized and larger agencies were especially likely to have male principals or senior managers. One in 4 agencies added staff in 2022, and 19% leveraged independent contractors, primarily producers.

In addition to the Big “I," the Future One coalition includes the following company partners: National General, an Allstate company; Amerisure; Central Insurance Companies; Chubb; CNA; Foremost, a Farmers Insurance Company; Grange Insurance; Hartford Steam Boiler (HSB); Liberty Mutual Insurance/Safeco; Nationwide; Progressive Insurance; Selective Insurance; The Hanover Insurance Group; The Hartford; Travelers; and Westfield Group.

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Market Share Report: Independent Agents Dominate Commercial Lines

The independent agency channel placed 62% of all property-casualty insurance written in the U.S. in 2022, according to the Big “I" 2022 Market Share Report, which also pointed to independent agencies' dominance in commercial lines, finding that nearly 88% of all commercial lines written premium was placed by the independent agency channel.

The annual Market Share Report compiles and analyzes property and casualty premium data from AM Best and provides insights for agencies and carriers on current market shares by distribution type.

While independent agencies were the clear leaders in commercial lines, independent agencies in the U.S. also placed 37% of all personal lines premium. Overall, independent agents placed approximately 62% of all p-c premium written in the U.S.

Solidground

Of the $765 billion in total premium written in the U.S., personal lines accounted for approximately 50% of the total premiums, just over 38% came from commercial lines, and the remaining 12% was “unclassified" coverage that could not easily be categorized as either personal or commercial lines. Independent agents place approximately 85% of this “unclassified" business.

“The demise of the independent agency channel has been predicted by various sources for many years, but the Market Share Report affirms the reality that independent agents have and continue to place the majority of all p-c business," Boggs says. “In particular, independent agents continue to prove their dominance in commercial lines."

Within the top 10 lines written by independent agents, workers compensation was the only line that did not see at least some growth in the percentage written by the independent agency channel between 2017 and 2021. All other lines saw the percentage written by independent agents remain steady or grow.

Best Practices Study: Highs in Organic Growth and Profitability

As the independent agency channel moves past the coronavirus pandemic and into uncertain economic headwinds, Best Practices agencies demonstrated strong organic growth and profitability, according to the 2022 Best Practices Study by the Big “I" and Reagan Consulting.

The Best Practices update is the first one in its three-year cycle, examining the newly qualified Best Practices firms throughout the nation that have been recognized for outstanding management and financial achievement. The annual study, conducted jointly in a longstanding partnership between the Big “I" and Reagan Consulting since 1993, provides critical performance benchmarks in six agency revenue categories ranging from under $1.25 million to over $25 million.

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“The past few years have brought challenges for independent agencies and their clients, but topperforming agencies have demonstrated resiliency as they've weathered these obstacles to grow their businesses and even break study records in numerous categories," Boggs says. “These industry leaders are setting the bar and demonstrating the independent agency channel has never been healthier."

Best Practices agencies are writing the playbook for success and agencies can look to these strategies to guide them toward operational excellence as they seek to better serve their clients. In particular, the organic growth and profitability metrics are the cornerstones of Best Practices agencies.

Most notable, Best Practices agencies charted a significant increase in organic growth. “This performance in a pandemic is nothing short of remarkable," said Tom Doran, a partner with