Reagan Consulting: Independent Agency System — Record Growth in 2023

Reagan Consulting tracks all things insurance and the firm’s latest posting has to do with the 2023 organic growth of independent insurance agents and brokers. Last year’s numbers are the single-highest level reached since Reagan Consulting’s quarterly growth and profitability study began in 2008.

The organic growth rate — Reagan Consulting — found hit 10.3% in 2023.

Reagan Consulting rates growth is based on what it calls the median Rule of 20. That means an agency hitting 20 or higher will meet, or exceed the historic, expected investor returns.

Kevin Stipe, Reagan’s Partner and CEO, said in 2023 that figure was 22.8 and tops 2022’s figure of 22.2 and 2021’s number of 20.6. Looking at product lines, Stipe said personal lines growth is unprecedented.

“The line of business that has historically grown by only 2% to 3% jumped to a record 10.3% growth in 2023,” he said. “It is reasonable to expect that 2024 will be another year of solid growth for personal lines.”

He did note that commercial P&C organic growth fell from the record high of 2022. Stipe said it is still double-digits at 10.9%. “The primary growth driver was the hard market — extending the current hard market to a remarkable six full years,” Stipe said.

As we move farther into 2024, Stipe also noted that agents and brokers are much more confident of how business will go than they were a year ago. Much of that comes via an improving economy and thoughts that a recession might not happen.

“Agents and brokers ended up setting new records for growth and profitability in 2023,” Stipe pointed out. “Perhaps even more stunning is that they are now projecting a repeat performance for 2024.”

Source link: Insurance Journal — https://bit.ly/42WJmXl

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The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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