As the insurance market continues to stabilize, the next phase of the market will reward independent agencies that can respond quickly as carriers regain confidence and begin competing for business again.
The Big "I" 2026 Market Share Report shows the independent agency channel continues to maintain control in commercial lines while it is also gaining ground in personal lines. At the same time, carrier profitability continues to improve. However, not all lines are profitable for underwriters.
Agencies that can respond quickly to changing carrier appetite will find opportunities to grow. Those agencies looking to grow in the changing landscape should keep an eye on three trends.
1. The independent agency is stable after a hard market
Many agencies have spent the last several years navigating a hard market. 2025 showed that the insurance industry has moved to a point of stabilization, and independent agencies entrenched their position within it.
The independent channel is slowly, steadily growing.
- Independent agents account for 62.1% of the market.
- Independents control 85-92% of the commercial market, depending on the line of business.
The Top 10 lines of business have shown steady penetration over the past five years. Notably, the independent channel ticked up in personal lines:
- Personal auto grew from 33% to 34%
- Homeowners’ insurance grew from 50% to 51%
Overall, the market is stable and improving. With steady growth and a softening market, agencies can expect more competition. Agencies will need to find a competitive edge as the market improves and carriers write more business.
2. Carriers are finding underwriting flexibility
Not only are agencies continuing to grow premiums and hold market share in P&C lines, but carriers are seeing a market that is friendlier to them. Most lines are becoming more profitable, suggesting insurers might be more willing to write business or reenter markets that were unfavorable for them not long ago. Agencies that stay on top of carriers’ changing market position and risk appetite will be in the best position to send them business and grow.
Carriers are in a stronger underwriting position. The overall combined ratio fell from 98% in 2022 to 88% in 2025. The growth in surplus lines has also slowed down in 2025, growing from 9.7% market share and $101.3 billion in premium in 2024 to 9.9% market share and $109.1 billion in 2025.
When underwriting improves, carriers regain options. They can expand appetite, revisit markets they previously exited, compete more aggressively on desirable accounts, and selectively pursue growth. But better underwriting performance doesn’t immediately translate into increased appetite. Agencies that monitor and capitalize on these changes will gain an advantage as those changes happen.
Agencies can start by strengthening existing carrier relationships, monitoring market trends, and watching coverage and market performance.
3. The market has new fragmentation
The general trend in the market is showing premiums increasing with loss and combined ratios improving. But some lines are still difficult for carriers. Independent agencies need to monitor carrier appetite in the individual spaces they work in and be ready to adapt.
Despite high payouts in 2024 and 2025 for disaster claims, fire, personal flood, and federal flood improved in loss ratios and combined ratios, even while premium placement grew.
- Premium growth remained flat, and loss and combined ratios for private flood fell in 2024 and 2025.
- Federal flood lines also saw five-year lows in loss and combined ratios in 2025—27% and 59%, respectively—after major payouts in 2024.
- Private carriers might be willing to win business away from NFIP.
There’s also a small split in auto markets. Independent agents have continued to gain ground in private auto insurance, though commercial auto is the only commercial line where the independent channel has lost market share (though only dipping from a five-year average of 86% to 85% in 2025). Loss and combined ratios are improving but continue to miss breaking even for four years running. In 2025, the combined ratio for commercial auto was 101%.
The majority of lines are moving in the right direction, but several remain expensive for carriers to write:
- Total combined ratios are at a five-year low but remain at 88%.
- Commercial auto, international, medical malpractice, and private crop lines all have combined ratios above 100%.
- Multi-peril crop, other liability, other liability (occurrence), and products’ liability have combined ratios above 90%.
The market is trending in a more underwriter-friendly direction, but some lines are still unfavorable.
Execution and adaptability are more valuable
The report depicts a strong independent channel that might open the door for more carrier appetite and agency competition. It suggests that agencies need to shorten the distance between market change and their own response.
As carrier appetite shifts, agencies that can recognize opportunities, pivot quickly, and place business efficiently will benefit first.
Read the full Big "I" 2026 Market Share Report to explore which lines of business grew in 2025.