The Agency Universe Study is a biennial study that surveys agencies on a range of issues including revenue streams, marketing methods, employees, ownership, business mix, product diversification, technology use and more. 

2018 version was just released, and the state of the independent agency system remains strong and healthy.

The number of independent agencies in the U.S. stands at 36,500—a slight decline since 2016 which is likely attributable to a robust mergers & acquisitions landscape and the use of a more accurate resource to validate the data for 2018.

Overall, 76 percent of agencies reported increases in total revenues with an average increase of 25 percent. The 2018 results suggest that agencies are embracing social media and digital marketing strategies, but still consider phone calls and client visits a vital part of their commitment to customer service. 

When it comes to what agencies are most concerned about, their top challenge is finding and retaining qualified staff, followed closely by finding ways to grow their commercial lines book of business.

One-third of agencies are concerned about consumers using direct purchase options for personal lines, while a quarter are concerned about the emergence of online commercial lines purchase options.

Paperless offices increased in both personal and commercial lines agencies by nearly 15 percent, as did use of texting with clients and agency e-signature initiatives, which both increased by nearly 10 percent.

The lack of diversity in independent agencies continues in 2018, with ongoing underrepresentation of women and people of color in agency principal positions. However, newer agencies saw an increase in African-American ownership, up nearly 10 percent since 2016. 

Member agencies have the option to purchase a management summary or full study report. Contact Madelyn Flanagan, IIABA VP of agent development, research and eduction, with any questions.