Where Are The Opportunities? U.S. Insurance Agent Distribution Reveals Market Opportunities and Competitive Dynamics

The distribution of insurance agents across the United States reveals not just where people are working, but also where the real growth opportunities lie. The concentration in certain states—and scarcity in others, creates very different competitive dynamics, depending on where an agent chooses to hang their shingle.

“Nearly 40% of the country’s 2.4 million licensed agents are clustered in just three states: Florida, Texas, and California.”

That means understanding state-level markets is no longer optional; it’s essential for agency growth, niche strategy, and competitive positioning.

Florida: High Volume, High Stakes

Florida tops the list with roughly 370,000 agents serving its 23.4 million residents. With hurricanes, flooding, and an older population fueling demand, there’s no shortage of customers. But that demand also breeds intense competition.

Many Florida agents carve out niches in Medicare Advantage or coastal property coverage. Cross-selling—think personal plus commercial lines, has become a survival tactic in one of the most saturated environments in the country.

Texas: Growth Fueled by Diversity

Texas is home to about 355,000 agents and is expanding quickly thanks to its booming economy and population growth. Energy, agriculture, and tech are obvious drivers, but so are newer risks like cyber and construction liability.

The lack of a state income tax only sweetens the pot for residents and businesses, making Texas a prime territory for agents who can balance personal and commercial lines effectively.

“Texas rewards the versatile agent, the one who can cover a ranch, a data center, and a suburban household under the same roof.”

California: Scale Meets Complexity

California, the nation’s most populous state, has only 189,000 agents, roughly half Florida’s count. Why? Regulatory headwinds, population outflows, and insurer withdrawals from wildfire-prone markets have all contributed to a tougher operating climate.

Agents who succeed here are leaning on technology and looking at specialty lines such as cyber, pet, or even niche liability coverage to stay profitable despite market volatility.

Beyond the Big Three

Smaller states may look like afterthoughts, but scarcity creates opportunity. In places like Alaska, Montana, and South Dakota, the number of agents is low, and local knowledge goes a long way. A single agent can cover wide territories with the help of remote digital tools.

And when you look at premiums, the story shifts again:

California led P&C direct premiums in 2024 at $94.3 billion.
But per-agent premiums were higher in states like Montana, Alabama, and Arkansas.
Montana in particular stands out due to long driving distances, elevated uninsured driver rates, and higher auto claims costs.

Workforce Dynamics

It’s not just geography that matters. Demographics show that men make up about 45% of agents, women about 39%, with the rest unspecified. In some states, women actually outnumber men.

Experience levels are also telling: 43% of agents have five years or less in the field. That means a younger, dynamic workforce is reshaping how insurance is sold, with digital adoption and niche specialization playing larger roles than ever before.

“The face of the U.S. insurance agent is younger, more diverse, and increasingly specialized.”

The Takeaway for Agents

So where are the real opportunities? They’re not always in the biggest states or highest-premium markets. Instead, it’s about strategy:

Find niches in crowded states like Florida.
Blend personal and commercial lines in growth markets like Texas.
Leverage technology and specialties to thrive in complex markets like California.
Take advantage of scarcity and higher per-agent premiums in smaller states.

In short, size alone doesn’t dictate opportunity, strategy does. Agents who align their expertise with market conditions can build stronger, more resilient books of business in a changing landscape.