The latest 2026 Agency Universe Study from the Big “I” offers a clear message for independent agencies: the channel remains resilient, profitable, and adaptable, but the pace of change is accelerating. While agencies continue to grow, they are simultaneously navigating evolving customer expectations, talent shortages, technology demands, and the rapid emergence of artificial intelligence.
One of the study’s most encouraging findings is that independent agencies continue to thrive. Approximately 37,000 independent agencies operate across the United States, a figure that has remained remarkably stable over the past decade despite ongoing consolidation activity.
Revenue growth was strong across the channel. Three out of four agencies reported increased revenue between 2024 and 2025, while only 8% experienced declines, down from 12% in the previous study. Personal lines revenue increased for 70% of agencies, and commercial lines revenue increased for 63%, demonstrating broad-based growth despite a challenging market environment.
At the same time, the makeup of the industry continues to shift. Smaller agencies now represent a smaller share of the marketplace, while larger firms continue to gain ground. Merger and acquisition activity remains concentrated among large and jumbo agencies, with 13% reporting M&A activity over the past two years and roughly one-third expecting future activity within the next two years. More than one in three agencies also anticipate some form of ownership change within the next five years, highlighting the importance of succession and perpetuation planning.
Perhaps the most striking trend in the report is the rapid adoption of artificial intelligence. AI usage among agencies jumped from just 15% in 2024 to 46% in 2026. Agencies are most commonly using AI for marketing content generation, coverage form analysis, and contract reviews. Yet adoption comes with challenges. Lack of knowledge, uncertainty about where to begin, and security concerns remain the biggest barriers preventing broader implementation.
The technology story extends beyond AI. Nearly all agencies now use some form of processing technology, with widespread adoption of e-signatures, client texting, personal lines downloads, and commercial lines downloads. However, agencies continue to identify dealing with multiple carrier interfaces as their top technology frustration. As digital tools become more essential, the demand for integrated carrier and agency management system solutions continues to grow.
Marketing priorities are evolving as well. Nearly half of agencies rank social and digital marketing among their top marketing activities, ahead of Google Business Profiles, search engine optimization, and website development. Facebook remains the dominant social platform, followed by Instagram and LinkedIn. These findings reflect an industry increasingly focused on digital engagement, prospecting, and maintaining visibility in competitive local markets.
Despite advances in technology, some longstanding truths remain unchanged. Agencies continue to place tremendous value on owning the customer relationship. Annual reviews, referrals, and direct conversations remain critical drivers of client retention and growth. When selecting carrier partners, agencies consistently prioritize competitive pricing, underwriter responsiveness, ease of doing business, and claims performance above all else.
The report also highlights several emerging concerns for agency principals. Finding and screening talent remains the industry’s top challenge, joined this year by the need to keep up with AI and leverage it effectively. Agencies are also focused on growing both personal and commercial lines books while securing carrier partners committed to their markets.
If there is one takeaway from the 2026 Agency Universe Study, it is that independent agencies remain exceptionally resilient. Growth is strong, confidence in the independent agency channel remains high, and agencies continue to adapt to changing technology and consumer expectations. The agencies that succeed in the years ahead will likely be those that embrace innovation without losing sight of the relationships, expertise, and local presence that have always defined the independent agency advantage.
For the full 2026 Agency Universe Study, OIA members can purchase a full report or buy an abbreviated executive summary online by visiting the Big “I” at https://www.independentagent.com/agency-universe-study/
Source: 2026 Agency Universe Study Future One / Independent Insurance Agents & Brokers of America.
About the Author:
Alex Bowie is a marketing professional currently serving as the Senior Manager of Marketing & Communications at the Ohio Insurance Agents Association, Inc. (OIA). In this role, he leads the association’s marketing and communication strategies, elevating OIA’s brand presence and member engagement. His prior experience in the insurance sector—particularly at the insurtech company, Branch—has been instrumental in enhancing OIA’s outreach and engagement efforts.
