Independent Insurance Agencies in 2026: Trends and Challenges

The number of independent insurance agencies in the U.S. experienced a minor decline from 39,000 to 37,000 between 2024 and 2026. Yet, these agencies reported significant profitability in both personal and commercial lines.

According to the 2026 Agency Universe Study by Future One, a partnership between the Independent Insurance Agents & Brokers of America (Big “I”) and 16 insurers, this sector has remained resilient despite facing numerous challenges. This study, which has provided insights into the independent agency market since 1983, highlighted that the number of agencies experiencing revenue declines dropped from 12% in 2024 to just 8% in 2026, showcasing an impressive adaptation to market pressures.

Technological Hurdles and Agent Preferences

Managing multiple carrier interfaces remains a significant technological challenge for agencies. The study reports that 86% of agents prefer traditional customer service methods, such as phone calls, over online self-service systems, which garnered less than a quarter of the support. While agencies are open to offering online self-service for accessing policy documents, handling billing, and processing claims, they are cautious about enabling online purchasing of policies and obtaining quotes.

Key Challenges and Market Trends

Independent agencies continue to face hurdles such as recruiting qualified candidates (45%), understanding AI advancements (43%), and expanding personal lines business (41%). With a softening insurance market, apprehensions about carrier commitments have lessened to 41% from 56% in 2024. Moreover, 57% of agency representatives stress the importance of training customer service reps and producers in value selling over price competition.

Independent agencies are successfully navigating a changing insurance landscape and the surge of AI. 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.

Charles Symington, President and CEO of Big “I”

Independent Agency Sector Snapshot (2026)

The 2026 survey, conducted by Zeldis Research with 1,376 participants, underscores independent agencies’ ability to adapt and thrive. As the market evolves, agencies are not only integrating new technologies but also building on the core principles of trust and personal relationships to retain their distinct advantage.