Other key findings of the 2010 AUS include:

The number of independent agencies remains stable. After a decade of declining numbers of agencies, 2006 saw a return to stability. Since 2006, there have been approximately 37,500 agencies in business in the United States and that number remained approximately the same for 2010.
The system as a whole is very dynamic, particularly among smaller agencies. Of the 37,500 agencies existing in 2010, approximately 11 percent or 4,000 were founded in 2008, 2009 or 2010. That number is approximately equal to the number of agencies lost as separate entities through mergers and acquisitions.
A regional redistribution of independent agencies. A review of agencies founded since 2005 found that 50 percent of new agencies are located in the South, 24 percent in the South Atlantic states and 19 percent in the West South Central Census division. This may reflect the flexibility of the independent agency system, which allows it to serve markets many captive agency companies have essentially abandoned. In contrast, only 8 percent of new agencies are located in the Northeast, compared to 18 percent of older independent agencies.
Decline in commercial lines revenues hit the very largest brokers hardest. Among independent agencies and brokers decreases in commercial insurance revenues were significantly concentrated in the larger agencies.
Agencies have suffered from the soft insurance market and, since 2008, from the Great Recession. While 55 percent of small agencies saw increased revenues from 2008 to 2009, 25 percent had decreased revenues. In all of the other size categories, agencies with decreased revenues have outnumbered those with increased revenues. The decline in revenues has been substantially worse in commercial lines than in personal lines. Consequently, it has hurt larger agencies, more dependent on commercial lines, hardest.
The cost of technology has become a less important issue. Marketing the agency effectively on the Internet, security and ease of use of new real-time functionality are now the top three most important technology issues for agency owners. At the same time, carrier websites have gained ground as the preferred method for agency-carrier interactions.

Special Reports /

Study finds: Number of independent agencies stable

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