Independent agents continue to dominate commercial lines while rivaling direct response writers and captive carriers in personal lines business, according to the latest Market Share Report from the Big “I."

Using 2013 premium data provided by A.M. Best Company, the report finds that all property-casualty insurance premium lines grew for the third year in a row, bouncing back from their recession-driven low points in 2010. Combined, the market grew by $25 billion in 2013 over its 2012 levels. After three years of strong growth, both personal and commercial lines have exceeded prerecession volumes, now generating $532 billion in annual premiums combined.

At both the state and carrier level, independent agents and brokers were well-poised to capture their share of the market or more. In fact, the independent agency channel grew faster than the overall market and thus increased market share in about half of all states and in Washington, D.C. Several independent agent carriers increased market shares by substantial amounts, even though significant divergence separated national and regional carriers in terms of growth.

The commercial lines market surged in 2013, expanding by $14.2 billion in total premiums written, the primary metric used in this report. This sector has grown by nearly $35 billion since the market rebound began in 2011. Considering independent agents and brokers write nearly $8 of every $10 in premiums in this sector, 2013 was another excellent year for the independent agency model in this market.

Independent agents and brokers also performed well in personal lines business in 2013, when they:

• Grew personal lines at a faster rate than captive carriers, reporting 3.6% growth in premiums (versus 3.4%).
• Grew personal lines premiums by $3.2 billion, rivaling the growth reported by direct response writers ($3.4 billion).
• For the second year in a row, competed exceedingly well in the homeowners market. In both 2012 and 2013, independent agents and brokers generated more than 57% of all of the growth in the homeowners market and reported annual growth rates of nearly 8% both years.
• Grew regional personal auto premiums in 2013 almost as much as the entire direct response model. Regional independent agents and brokers increased personal auto premiums by $2.8 billion in 2013, a mere $100 million less than the $2.9 billion in growth reported by the direct response channel.

The direct channel continued to grow at a double-digit rate of return as they continue to leverage their marketing and advertising expenditures to build their brand awareness.

This is the 19^th year the Big “I” has reviewed the p-c insurance market. Once again, the data and analysis are encouraging in several ways, showing how well the independent agency system continues to perform in the face of an evolving and challenging marketplace.

Download the full report for 2014 and previous years. 

Madelyn Flannagan is Big “I” vice president of agent development, research and education.