Agency Universe

The number of independent insurance agencies fell slightly from 2024 (39,000) to 2026 (37,000). The good news is that most independent agencies report profitability across both personal and commercial lines, with significantly fewer agencies reporting revenue decreases compared to 2024, down from 12% to 8%. That’s according to the Big I’s 2026 Agency Universe Study on behalf of Future One, a collaboration of the Big “I” and 16 independent agency companies. The primary focus of the Agency Universe Study is to provide information on the size and characteristics of the independent agency system.

On average, agencies report 9.9 staff members across all positions, up from an average of 8.2 in 2024. While 1 in 3 agencies say their employee count has increased in the past two years, hiring depends on size.

About 7 in 10 agencies report increases in personal lines revenue and 2 in 3 in commercial lines revenue from 2024 to 2025.

Nearly half (46%) of agencies report using AI, up significantly from 15% in 2024. Uses include marketing content generation (49%), coverage form analysis (43%), and contract reviews (35%). Lack of knowledge about capability (60%) and security and privacy (48%) were the top two barriers to AI adoption, both increasing by 10% compared to 2024.

The biggest technology challenge for agencies was, as in previous years, dealing with multiple carrier interfaces. Most agents (86%) continue to prefer that customer service go through their agency via phone or other non-online methods. Less than a quarter prefer online self-service via a carrier website or app.

The survey found that the top challenges overall for agencies were finding and screening job candidates with strong potential (45%); keeping up with the latest in AI (43%), which was a new entry; and growing personal lines business (41%).

As the market softens, concerns about carriers’ market commitment eased to 41%, down from 56% in 2024.

Interestingly, more than half (57%) said there is a significant need for training to help customer service representatives (CSRs) and producers sell on value rather than price.

“Independent agencies are successfully navigating a changing insurance landscape and the surge of AI,” said Charles Symington, Big “I” president & CEO. “As the market evolves, agencies are investing in AI and other technologies without losing sight of what distinguishes the channel: trusted advice, choice, and personal relationships.”

The Agency Universe Study was first conducted in 1983. Since 2002, the study has been completed biennially. Since 2004, the Agency Universe Study has relied on internet data collection. In total, 1,376 respondents were included in the 2026 study, conducted by Zeldis Research in cooperation with Future One.

Thank you to this issue’s sponsor, Ryan Specialty.