Evolving Channel: Key Findings From the 2026 Agency Universe Study

• By: Will Jones
• October 1, 2026

Future One, a collaboration of the Big “I” and leading independent agency companies, has released key findings from the recently completed Agency Universe Study, hailed as the most comprehensive look at the independent agency system.

Independent agencies are targeting growth while reshaping operations to better serve clients, according to the 2026 Agency Universe Study. Even as hiring and technology adoption remain persistent challenges, agencies are investing in tools, particularly artificial intelligence (AI), talent and customer experience while attempting to enhance the relationship-first approach that defines the independent insurance agency channel.

“Independent agencies are successfully navigating a changing insurance landscape and the surge of AI,” says Charles Symington, Big “I” president & CEO. “This study illustrates a distribution channel that remains stable, resilient and well-positioned for the future. 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 2026 Agency Universe Study looks at statistics about independent agencies operating in the U.S., including their numbers, revenue base and sources, number of employees, ownership, mix of business, product diversification, technology use, non-insurance income sources and marketing methods.

“The Agency Universe Study remains the most empirical look at the largest insurance distribution channel in America: the independent agency channel,” says Jennifer Becker, Big “I” senior director of agent development, research and education. “This year’s study provides a unique barometer on the agency system as it evolves around technology, softer markets and perpetuation.”

The study found that the number of agencies stands at 37,000. Amid an active merger & acquisition climate, this is a slight dip from two years ago but it remains a relatively stable number over the last decade.

As many as 3 in 4 agencies saw revenue increases between 2024 and 2025, matching 2024 findings. Meanwhile, significantly fewer report a decline in revenue in 2025, down from 12% in 2024 to 8% in 2025. About 7 in 10 agencies report increases in personal lines revenue, and 2 in 3 report increases in commercial lines revenue from 2024 to 2025.

While premium increases account for some of the revenue numbers, “a lot of it is organic growth,” says Kristina Witzling, executive vice president at Zeldis Research, the study’s co-author.

“The vast majority told us that they’re growing both personal and commercial lines—they’re really targeting growth,” she says. “We’re seeing more cross-selling, and more agencies tell us that they’re selling cyber; that’s been going up every year.”

Carrier appointments across all lines were also up from an average of 17.2 in 2024 to 19.7 in 2025. Agency staffing also rose, from an average of 8.2 employees to 9.9. This is despite the Bureau of Labor Statistics finding that the industry’s unemployment rate rose to 3.3% in July from 1.7% in April.

Again, why did these numbers increase? “Agencies are trying to grow,” Witzling says. She points out that agencies are not only hiring more producers, they’re also hiring more of “the account managers and customer service representatives who are providing the service that the independent agency channel is known for—because if they’re going to sell and grow, they also have to be able to deliver on it.”

“I talk to agents all the time; I do a lot of qualitative research with them, and they talk a lot about wanting to bring on more folks to help sell, to help grow, to help cross-sell,” she says.

That growth mindset is also showing up in how agencies approach new technology to optimize their operations. Nearly half (46%) of agencies report using AI, up significantly from 15% in 2024. Current uses include marketing content generation (49%), coverage form analysis (43%) and contract reviews (35%).

Still, adoption comes with hurdles. Lack of knowledge about capabilities (60%) and security and privacy (48%) were the top two barriers to AI adoption. Keeping up with AI also emerged as a top industry challenge, cited by 43% of respondents, behind only finding and screening job candidates with strong potential, cited by 45%.

“We’re seeing AI growing by the minute,” Witzling says. “We did this survey in the spring, and I think if we did it today, that 46% [using AI] would be higher yet.”

Agencies can start overcoming AI adoption hurdles by first identifying low-hanging fruit, then moving on to more technical tasks, Witzling says. As far as addressing security and privacy concerns, agencies should focus on “determining their comfort level” with certain tasks based on “the level of risk and what [AI output] they need to double-check,” she says.

Agencies also need to gauge their customers’ comfort level with AI. An overwhelming 87% of consumers say that having a human insurance agent remains important, according to a separate Big “I” survey. At the same time, 61% of consumers say they are more likely to choose an insurance agent who uses AI and other modern technology to provide faster and more personalized service.

The consumer sentiment underscores the need for technology that enhances, rather than replaces, the valued relationships and expertise independent agents provide. “The question agents need to ask themselves is: How can AI support but not hurt that central promise of providing that human element?” Witzling says.

Ultimately, AI adoption is about “finding balances” between human oversight and interactions with automated processes. “As they take that measured approach, and as they test and check, and see what works for them and verify it, we’ll start to see the right balance of AI,” Witzling says.

While agents are embracing technology and AI, they are still emphasizing personal relationships. The majority of agencies still prefer customer service interactions to come through the agency, with 86% preferring to service customers over the phone. Also, half of agencies say they’re placing greater emphasis on customer experience in the months ahead.

“I heard this 20 years ago when I talked to agents, and I hear it now: they still say it’s a relationship business,” Witzling says. “I think that’s true on the personal lines side and I think it’s true on the commercial line side. There’s still that core promise, that they’re going to form a relationship.”

“Agents told us that they’re providing customer self-service tools, they’re providing website tools, but they’re not staying behind the times,” she says. “They’re bringing their own relationship approach, knowledge and guidance hand in hand with the technology.”

Looking ahead, Witzling says the next Agency Universe Study, slated for 2028, will show how agencies continue to balance expanding technology options with the personal relationships that remain central to the independent agency value proposition.

“I can’t even imagine what things are going to look like. None of us can. But I think the piece that we’ll be watching is that balance of self-service and personal [interaction],” she says. “We’ll see how it shifts and changes, and how agents shift and change with it.”

Witzling will also be watching cross-selling trends, how they affect product mix and how agencies’ market access continues to evolve.

“There are questions around the channels that agents are using to place business. They’re going directly to carriers, but they’re also using wholesalers, managing general agents, and placing more business in the excess & surplus marketplace,” Witzling says. “As we watch those things evolve, we’ll dig a little bit more into how that business is placed.”

Together, those trends suggest that the next phase for independent agencies will not be defined by technology alone. It will be shaped by how agencies use new tools to deepen relationships, expand access to markets and continue delivering the advice and service clients expect and need.

Will Jones is IA editor-in-chief.