Trends in U.S. Commercial Insurance Premiums and Independent Agencies
Commercial insurance premiums decreased in the first quarter of 2026, marking the first such decline in nearly nine years. According to the Council of Insurance Agents & Brokers (CIAB), there was an average reduction of 1.2% across various account sizes, breaking a 33-quarter trend of increases.
In the independent agency sector, the 2026 Market Share Report by the Independent Insurance Agents & Brokers of America (Big "I") highlighted that independent agents were responsible for placing 62% of all U.S. property and casualty insurance in 2025. This represents a slight increase from 61.5% in 2024, aligning with the channel's five-year average.
The report, published on June 23, analyzed property and casualty premium data gathered from AM Best across all 50 states and the District of Columbia. It shows that independent agents increased their share of personal lines to 39.5% in 2025, up from 39.2% in 2024, continuing a steady rise from 36.7% in 2021.
During the same period, investment in direct-to-consumer insurtech contracted sharply. Investment peaked at $4.9 billion in Q2 2021 but then declined significantly, reaching $800 million by the end of 2022—a 78% drop from the peak. In 2023, personal auto premiums in the direct channel rose by 10.3%, while the broader market experienced growth of 18.7%.
Changes in Commercial Lines
Within the commercial lines, independent agencies maintained a strong presence, writing 87.7% of premiums in 2025, slightly down from 87.9% in 2024. The use of surplus lines among these agencies increased to 9.9% in 2025, surpassing the five-year average of 9.3%. Private flood insurance utilization rose to 52.6%, compared to the five-year average of 47.4%.
CIAB indicated changes in the commercial market, reporting lower pricing, more flexible underwriting terms, and a broader carrier appetite, even for risks previously declined. Commercial property premiums saw a decrease of 5.5% on average in Q1 2026, with 72% of CIAB members noting expanded property underwriting capacity.
Net written premium growth dropped to 2.9% in Q1 2026, down from 6.8% in Q1 2025 and 9.6% in Q1 2024, according to data from Verisk and the American Property Casualty Insurance Association (APCIA). The Swiss Re Institute projected direct premiums written growth to slow to 4% in 2026, compared to 5% in 2025, due to reduced pricing momentum and heightened competition.
The combined ratio for independent agencies decreased to 88% in 2025 from 92% in 2024, below the five-year average of 94%. The loss ratio also improved to 57.3%, compared to a five-year average of 63%. The overall property and casualty industry achieved a combined ratio of 92.9% in 2025, the lowest in over ten years, as reported by Verisk and APCIA. AM Best's market outlook in March 2026 cited better loss ratios as a reason for carriers to exercise confidence in loosening underwriting standards.
In 2025, direct written premiums through the independent agency channel reached $1.1 trillion, an increase from $1.05 trillion in 2024. The U.S. property and casualty industry reported an estimated net underwriting gain of $63 billion for the entire year of 2025.
Charles Symington, president and CEO of the Big "I," highlighted that the findings in the Market Share Report underscore the channel's stability during challenging times. "The resilience of the independent agency channel is evident in this year's Market Share Report, painting a clear picture of its stability through the hard market," Symington stated. He emphasized the integral role independent agencies play in the insurance marketplace, offering clients essential choices, guidance, and service. As the market begins to transition, Symington noted that the channel is well-positioned to capitalize on improving conditions.