Two surveys by the leading national agent and brokerassociations indicate that producers continue to see improvementsin their business, but profitability may not be as large asthe market shifts from its soft-market phase.

The Independent Insurance Agents & Brokers of America(IIABA) released its 2012 Best Practices Study, which found organicgrowth improved at a modest pace for producers.

“The results of this year’s Best Practices study indicate thatorganic growth continues to improve as the independent agencysystem faces the unusual combination of a hardening market and acontinuing soft economy,” says Madelyn Flannagan, IIABA vicepresident of agent development, research and education. “Most BestPractices agencies confidently held their ground and have putresources and systems in place to move cautiously into a changingmarket.”

The report says organic growth improved to its highest levelsince the economic downturn in 2008-2009.

Small to midsize agencies grew organically by 2.1 percent, whilelarger agencies grew by an average of 4.5 percent. The IIABAcredited the growth to strategies agents learned during theeconomic downturn.

Agencies also cut the fat from their businesses by loweringexpense and controlling costs. These lessons, learned during thesoft market, produced flat revenue growth for agencies.

Robert Rusbuldt, IIABA president and CEO, says the results “werenot stellar” as agencies continued to bounce back from the GreatRecession and soft market. "Overall, we are pleased but notsurprised that the independent insurance agency system remainsstrong and stable,” he says.

Meanwhile, the Council of Insurance Agents & Brokersreleased its third-quarter pricing survey of producers which foundthird-quarter pricing averaged a 3.9 percent increase.

Medium-size agencies had the best numbers with 4.5 percent, andlarge accounts showed the lowest increase at 3.5 percent.

“We definitely saw an increase in most lines, but it was more ofa creep than a leap,” says CIAB President & CEO Ken A. Crerar.“Carriers seemed more focused on tightening terms andconditions.”