Independent insurance agencies continue to show resilience and growth, even as technology, hiring challenges and changing market conditions reshape the industry, according to the newly released 2026 Agency Universe Study from Future One and the Independent Insurance Agents & Brokers of America (Big “I”).
The biennial study estimates there are approximately 37,000 independent insurance agencies in the United States, a slight decline from about 39,000 in 2024. Despite the decrease, the number of agencies has remained relatively stable over the past decade.
Revenue results were generally positive. Three out of four agencies reported revenue growth between 2024 and 2025, while only 8% reported a decline, compared with 12% in the previous study. About seven in 10 agencies reported higher personal lines revenue, while roughly two-thirds saw increases in commercial lines.
Agencies are also adding employees. The average agency reported 9.9 staff members, up from 8.2 in 2024. About one-third of agencies said their employee count increased during the previous two years, although larger agencies were more likely to add staff than smaller firms.
AI Use Jumps Among Independent Agencies
One of the biggest changes identified by the study is the rapid adoption of artificial intelligence.
Approximately 46% of agencies now report using AI, compared with only 15% in 2024. Among agencies using the technology, common applications include creating marketing content, analyzing coverage forms and reviewing contracts.
However, adoption continues to present challenges. Sixty percent of agencies cited a lack of knowledge about AI capabilities as a barrier, while 48% identified security and privacy concerns. Keeping up with AI was also identified as one of the industry’s leading challenges.
Agencies Increase Marketing Spending
Independent agencies are also investing more heavily in marketing. Average marketing budgets increased from approximately $14,300 in 2024 to $20,600 in 2026.
Social media and digital marketing were the most commonly cited marketing activities, followed by Google Business, search engine optimization and agency websites. Facebook remains the leading social platform used by agencies, followed by Instagram and LinkedIn.
Despite growing investment in technology, the study suggests that personal relationships remain central to the independent agency model. About 86% of agents prefer customer service interactions to go through the agency by phone or other non-online methods rather than primarily through carrier self-service platforms. Agencies were more comfortable allowing customers to use digital self-service for functions such as accessing policy documents, billing and claims.
Hiring remains another significant concern. Finding and screening candidates with strong potential was identified as a top challenge by 45% of agencies, followed closely by keeping up with AI and growing personal lines business.
The 2026 Agency Universe Study included 1,376 respondents and was conducted by Zeldis Research in cooperation with Future One. The study has been conducted since 1983 and provides data on agency size, revenue, staffing, ownership, technology, marketing and other trends affecting the independent agency system.
The 2026 Agency Universe Study Management Summary is available through the Big “I” for $99.95 and can be purchased by both members and non-members.
