Independent Insurance Agency Count Fell Through 2026
The total number of independent insurance agencies declined to 37,000 as firms increased staffing and AI adoption.
Updated on Oct. 5, 2026 in Insurance
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The number of independent insurance agencies in the United States decreased from 39,000 in 2024 to 37,000 in 2026. This consolidation occurred even as agencies expanded their average staff size to remain competitive in the current market.
Why it matters
The shift toward fewer, larger agencies reflects a broader consolidation trend in the insurance sector aimed at operational efficiency. For consumers, these larger firms often leverage improved internal resources to manage policy options and service delivery.
The number of independent agencies dropped to 37,000 in 2026 from 39,000 in 2024, representing a reduction in the total marketplace. The impact of these business shifts on individual insurance premiums remains an area of ongoing observation.
The details
Agencies are increasingly using artificial intelligence, with usage climbing to 46% in 2026 from just 15% in 2024. These firms deploy the technology for marketing content generation, contract reviews, and coverage form analysis. Meanwhile, average staff sizes have grown from 8.2 employees to 9.9 members, helping agencies scale their operations while reducing the number of firms reporting revenue decreases to only 8% in 2026.
Timeline
1983: The Agency Universe Study was first conducted.
2024: The number of independent insurance agencies reached 39,000.
2026: The number of independent insurance agencies decreased to 37,000.
Money Landscape
This decline follows the long-term industry monitoring established by the Agency Universe Study. It reflects a multi-year consolidation cycle where technology and scale have become more central to agency survival.
Larger agencies may offer broader access to carriers but potentially more standardized service models than smaller, local offices. Homeowners and drivers should review their policy renewal documents to confirm their service provider has maintained local support as firms consolidate.
The takeaway
While the insurance market is consolidating into fewer, more technologically capable agencies, service quality can fluctuate during organizational changes. Consumers should monitor their policy declarations for changes in agency contact information and discuss any coverage adjustments with a professional.
Further reading
For more on managing your coverage, see our Insurance section.
Source note: This article includes information reported by Insurance Journal.
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