It has been quoted in thousands of reference pieces and has helped companies and agencies refine their relationships with one another. It is a product of Future One, a cooperative effort between IIAA and several independent agency carriers. In 2000, there are about 42,000 independent agencies, compared with an estimated 44,000 in 1996 and 42,000 in 1992. The history of the study has shown that while the actual numbers of agencies are slowly declining, agency revenues and employment have continued to grow. A new business paradigm has emerged during the past four years.
Revenues Rising Most agencies are still relatively small.
The number of carriers an agent represents has increased. On average, agencies represent 7.3 carriers for personal lines, 6.7 for commercial lines, and 4.7 for life and health insurance. While the smaller agencies represent fewer carriers, their numbers still average 6.7 for personal lines and 3.8 for commercial carriers. Generally, agencies added 1.6 personal lines and 1.3 commercial lines carriers in 1999, as well as 1.2 life and health carriers. Agencies also did some housecleaning, throwing out 1.1 personal lines carriers, 0.8 commercial lines carries, and 0.5 life and health carriers during the past year.