Independent agents and brokers mark all-time high in 2021 – InsuranceNewsNet

ATLANTA (February 10, 2022) – Organic growth rates for the nation’s independent insurance agents and brokers have doubled from 2020 to 2021. That’s one of the zeniths uncovered in Reagan Consulting’s latest Growth and Growth Survey. profitability (GPS), which measured the fourth quarter 2021 results, complementing the annual look at the industry sector.

While hard work was a factor, much of the story of accelerating growth can be attributed to the economy’s rapid recovery, Doran says. And the acceleration in growth in the fourth quarter occurred almost exclusively among the commercial branches.

Organic growth of individual lines

While commercial property and casualty insurance broke survey records, personal property and casualty insurance recorded organic growth of 3.3%. That’s in line with historic growth norms of 2% to 4%, “regardless of the overall economy and rate environment,” says Doran.

At 4.0%, employee benefit lines rose only slightly, tempered by “a workforce taking a frustratingly long time to get back to work” during the ongoing pandemic, Doran adds. Service and hospitality businesses, for example, have still not returned to pre-COVID-19 employment levels.

Outlook 2022

“We have earned the right to celebrate our successes in 2021,” says Doran. Looking ahead, agents and brokers are optimistic and predict organic growth of 7.1% in 2022. Doran urges them to stay focused. “Supply chain issues persist. COVID refuses to become a bad memory. Inflation rates are at their highest level in a generation, and interest rates should start to rise to calm things down,” he says. “2022 will have its challenges.”

For further observations and comments on fourth quarter 2021 results, contact Tom Doran of Reagan Consulting, 404.869.2534 or [email protected].

The Reagan GPS was formerly known as the Organic Growth and Profitability (OGP) survey. Each agency participating in GPS receives a personalized, confidential report of its performance against the overall survey results, as well as Reagan’s quarterly commentary on industry trends affecting agents and brokers. For more information on participating in the survey, contact Michelle Appelbaum at 404.869.2541 or [email protected].