Validation Continues for Independent Agents / Rate Updates / US Staffing Improving / Alinsco Growth

This week "Insurance Journal" released an article with data from the Big I 2022 Market Share Report reaffirming the majority of P&C insurance placed in the U.S. is via the Independent Agent system.


"The independent agency channel places 62% of all property-casualty insurance written in the U.S., according to the Big I 2022 Market Share report." Agents make up 37% of personal lines placement.


According to the data, the influence and penetration of Independent agents is growing. Great news for agents and continued opportunity for growth.


Insurance carriers Q2 data continued to show the signs of the impact of inflation. As a result, rates continue to climb across the board. Here are the latest:


  • State Farm +5.6%

  • Allstate 21%

  • GEICO +21.1% (on top of their +17% just two months ago)

  • Amica +15%

  • Dairyland +7.9%

  • Lonestar Maverick +5.3%

  • Root +19.7%

  • State Auto +4.2%

In April of 2020 the U.S. economy saw more the 20 million people lose their job or exit the workforce. Over the past 27 months the number of people in active employment has grown an average of 800,000 a month. (Chartr Updates, August 9,2022)


Agency owners have shared their frustrations with me over the past two years in keeping and finding employees. I heard stories of licensed agents leaving the industry to work at Amazon. Stepping away from a career with long term opportunity for a quick hourly rate grab. As we've seen, Amazon, Walmart and others are preparing for staff reductions.


Agents have shared their stories of improved opportunities in securing staff over the past few months. We must continue to promote the value in developing an insurance career and the long term gains from building a portfolio of clients.


Agents are looking at Alinsco more than ever before. Quotes with Alinsco grew 50% in the first six months of 2022 to the highest level in our history, and with recent updates, new business is growing. Agents have shared our long term stability, best in class claims management, simple software, and superior support teams make Alinsco a great choice for clients and for the ease of developing their agencies.

 

On a personal note: I became a granddad last month with the arrival of Sofia Marie Langer to my daughter and son-in-law. My wife and I are super excited for this new phase of life and family.


I covet your feedback and market impressions. Please contact me anytime. Also, I will see some of you at our San Antonio Market Chat coming up next month. Contact your rep for details.

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