The impartial brokers positioned greater than 62% of all property/casualty insurance coverage written within the U.S., in line with the Impartial Insurance coverage Brokers & Brokers of America (the Massive “I”).
The affiliation’s 2024 Market Share Report stated impartial brokers have excessive penetration charges in business strains, with “room for development” in private strains.
Unique or captive brokers and direct gross sales accounted for 21% and 16%, respectively, of premium placements in 2023, in line with the report.
Whole P/C direct written premiums reached $952 billion in 2023, up from $861 billion in 2022. General, the impartial company channel positioned 87% of business strains premiums in 2023, and 39% of private strains—up some extent from 2022. Since 2019, the proportion of placements by impartial brokers has gone up some extent in private strains, the place they face essentially the most competitors from unique/captive brokers (35% of placements in 2023) and direct gross sales (25%).
Impartial brokers wrote practically 33% of personal passenger auto and greater than half of householders muti-peril premiums in 2023. Among the many high 10 strains of enterprise, the very best penetration price was employees’ compensation, at 91%.
“Regardless of the numerous challenges posed by the laborious market, impartial companies’ market share held regular and even continued making good points in key strains—a testomony to the power of the impartial company channel,” says Charles Symington, Massive “I” president & CEO. “On this present setting, alternative is extra vital to clients than ever earlier than, and impartial brokers proceed to show themselves as trusted advisors for his or her shoppers and indispensable companions within the insurance coverage market.”
The usage of surplus strains grew in all states, stated Massive I. 5 years in the past, about 6.2% of premiums went to surplus strains carriers. In 2023, 9.4% went to those unregulated carriers.
Turning to commissions, the 2023 common price within the U.S. was 11.4%—matching the 5-year common—with the very best fee price within the District of Columbia (13.8%) and the bottom in Delaware (9.9%). By line of enterprise, the very best fee price was in surety, at practically 27%. The bottom was personal passenger auto and extra employees’ comp—7.7% and seven.8%, respectively. Owners multiperil paid 12.4% fee.
The report compiles and analyzes property/casualty premium information from AM Greatest and supplies insights for companies and carriers on present market shares by distribution varieties.
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