Number of Independent Auto Insurance Agencies in the U.S.
There are 38,000 independent insurance agencies making up about 66% of all auto insurance companies in the United States. The average number of staff in an independent insurance agency is 6.2 staff members with a range from 3 to 75.5 staff members depending on the agency size. Below you can find more on my findings.
After an extensive search I located an Agency Universe Study by the Independent Insurance Agents & Brokers of America. The study is from 2014 but it is the newest data I was able to locate that contained some of the requested information, specifically the average size of an agency with regards to staffing as well as overall size. I was able to locate a newer study from 2016 by the Independent Insurance Agents & Brokers of America but it was not as detailed and does not include all of the requested information so I included the updated numbers from this study where appropriate as well as the figures and statistics from the 2014 study.
In the United States, independent auto insurance agencies make up 66% of the auto insurance companies industry. Independent agencies have seen a steady decline in the past two decades. In 1996, there were 44,000 agencies, the lowest point beginning in 2006 at 37,500 and staying flat until 2012. In 2012, there were 38,500 independent agencies, a stable number over the next two years and into 2014. The stability existed partly because of the decreased rate of new agencies compared to 2012. By 2016, the number of independent insurance agencies declined slightly to 38,000.
Independent auto insurance agencies are split up into small, small-medium, medium, medium-large, large and jumbo sized agencies. In 2016, 21% of the total agencies were small while 53% were medium-small in size. Medium-small agencies are defined as having a revenue of between $150,000 to $499,000 annually compared to small agencies with less than $150,000 in revenue annually and jumbo agencies with $10 million or more in revenue annually.
Only 5% of all independent auto insurance agencies have locations in other states. In fact, 80% only have one location, 13% have two locations and only 7% have three or more locations, 70% of which are considered jumbo sized agencies.
The average size of an independent auto insurance agency staff is 6.2 which has not changed since 2012. Total staff per agency ranges from a 3 person staff for small insurance agencies to a 75.5 person staff for jumbo agencies.
Of these staff members, 86% of the senior managers are male while 72% of the non-principal agency managers are women. The customer service representatives are just as uneven with a huge 89% being female. A further breakdown shows that 92% of senior managers and 91% of non-principal agency managers are Caucasian/Non-hispanic. In 2016, the average age of the agency principals was 55 with the highest age ranges being 17% at 51-55 years old, 18% at 56-60 years old and 17% at over 66 years old.
The number of independent auto insurance agencies has been steady despite a brief decline and then slight increase. The last decade has been relatively consistent which allows us to assume that the average number of staff per independent auto insurance agency is also steady. There are almost 40,000 independent auto insurance agencies with an average of 6.2 staff members per agency.