For the 2023 Agent Growth Study, the research team at Liberty Mutual and Safeco Insurance surveyed 1,141 U.S.-based independent agency principals, producers and CSRs. The research was conducted online by in-house Liberty Mutual Insurance research experts in late 2022. 

The research was the foundation for three research reports in 2023. Continue reading to see key insights from the research, or click through the links at the bottom of the page to read the reports.

Key insights from the 2023 Agency Growth Study

How agencies are planning for growth

• 53% of agencies are growing their revenue by more than 10% year over year
• 26% of the agencies we surveyed said they are aiming for aggressive growth, such as doubling the agency size in 5 years
• Agencies that aim for aggressive growth are growing an average of 24% year over year, double the growth rate of agencies that plan for slow and steady growth
• Agencies that aim for aggressive growth use more digital communication tools

Technology in independent insurance agencies

The 2023 Agency Growth Study looked specifically at agencies that focus primarily on small commercial lines to learn how they are using digital to drive growth and remain competitive in a hard market.

• Nearly 40% of agents that primarily sell small commercial lines reported using video calls, compared with just over 20% of agents who focus on personal lines
• 88% of small commercial agencies say they provide digital copies of documents instead of printing
• Small commercial agencies that are growing revenue by 10% or more year-over-year are more likely than slower-growing agencies to be investing in technology to streamline operations, using data to inform strategy and leveraging digital marketing

Read the report for more insights on technology in small commercial insurance agencies.

Insurance agency recruitment and hiring

• 51% of agency principals say finding and recruiting talent is their biggest management challenge.
• 67% of principals of large agencies (those with more than 10 employees) say that finding and recruiting talent is their biggest management challenge.
• 75% of independent insurance agencies are recruiting
  • 60% of agencies use referrals and networking for recruiting
  • 31% advertise online and on social media
• Between 2020 and 2022, agencies hired an average of 2 producers and 2.5 service and support staff.
  • 70% of new hires were millennials or Gen Z

Read the report for more insights on how agencies can attract and retain top talent 

Remote work and independent insurance agencies

• 77% of agency employees are satisfied with the flexibility their agency allows
• 54% of agency staff say flexible hours are a main characteristic of an ideal employment situation
• 62% of agency employees would prefer to work from home at least one day per week
• 61% of agency staff say their personal happiness is better when they are working from home
• 52% of agency staff say their productivity is better at home than in the office
• 39% of agencies said they would hire staff from elsewhere in the country

Independent insurance agency demographics and ownership

• The average age of a person working in an independent agency is 53
• 75% of agency employees are over the age of 40
• 25% of agency staff are a parent to young children (including nearly 50% of millennial staff members)
• 53% of agency principals/owners we surveyed started their agency from scratch
  • 22% left a captive agency to become independent
• Things that agency principals say helped on their path to ownership:
  • 59% many years of experience in the industry
  • 51% wanted to own their own business
  • 29% experience in client services (outside an agency)
  • 33% experience in sales (outside an agency)

Stats on independent insurance agency perpetuation and succession planning

• 51% of agency principals say their agency will have a major change in ownership in the next 10 years
• 68% of agency principals have a plan for who will take over the business
• 47% of agency staff members (non-principals) do not know their agency’s succession plans
• 61% of agency principals/owners have more than 20 years of agency experience, and 86% have more than 10 years of experience
• Agencies with fewer than 7 employees are more likely to consider selling to an outside party (38% vs 15% of agencies with 7+ employees)
• Agencies with more than 7 employees are more likely to have other principals buy out the leaving principal’s interest (57% vs 26% of smaller agencies)

Read the report for more insights on insurance agency perpetuation and succession