Key States Dominate P&C Insurance Premiums and Agent Workforce
In 2023, California led the nation in direct premiums earned for property and casualty (P&C) insurance, reaching an impressive $88.1 billion. Texas followed closely with $70.9 billion, and Florida secured the third position at $63.8 billion. These three states also boasted the largest numbers of P&C insurance agents.
California, Texas, and Florida represent the most populous states in the US and collectively account for nearly 40% of the nation’s 2,412,480 registered insurance agents. With 369,938 agents, Florida leads the trio, followed by Texas with 354,661 and California with 189,035. While also being the most populous state, California trails behind these states in the number of registered insurance agents. A possible factor for this may be that both Texas and Florida do not have a state income tax, potentially attracting both agencies and agents.
However, when considering estimated premium per agent, these states did not rank in the top 10.
Montana Leads in Premium per Agent, Ohio Trails
While California, Texas, and Florida exhibit massive overall premium volumes, Montana, boasting the nation’s fewest P&C agents, topped the list for estimated premium per agent. The state’s agents generated an estimated $3.6 million in premium each. Alabama followed with $3.1 million, and Arkansas came in closely behind at $2.8 million. The state of Ohio presented the least lucrative market for agents, with an average premium of just $592,920 per agent.
Montana’s relatively sparse population, around 1.1 million, contributes to the lower number of insurance agents compared to more densely populated states. Montana policies often carry higher premiums, particularly in sectors like agriculture, ranching, and natural resources. Furthermore, the state grapples with some of the highest auto insurance rates in the country, due to factors such as extended rural highways, higher incidence of severe accidents, a significant number of uninsured motorists, and increased vehicle repair costs due to rural conditions.
Ohio, in contrast, houses a high concentration of insurance companies and agents which consequently intensifies competition and pushes premiums lower. Major insurers such as Progressive, Nationwide, and Cincinnati Insurance are headquartered there. Also, the state usually ranks among the most affordable for car insurance, benefiting from a well-maintained highway system, competitive insurer pricing, and a lower percentage of uninsured drivers. In addition to those factors, Ohio’s monopolistic state fund for workers’ compensation further stabilizes costs for businesses.
Gender Distribution in the Insurance Sector
In the US insurance industry, there is a slight gender disparity, with men constituting 44.83% of the workforce, compared to 39.08% for women. Some 16.09% of agents did not register as male or female.
Experience Levels Among Insurance Agents
The U.S. insurance landscape is marked by a significant influx of younger professionals. Approximately 43% of agents have zero to five years of experience. The proportion of agents decreases with longer tenures; only 10% have 25 or more years in the field. California and Vermont deviate from this trend because the majority of agents in these states have six to 15 years of professional experience. California, with one of the largest and most complex insurance markets in the country, has a high demand for seasoned agents, particularly in areas like commercial lines, high-value home insurance, and specialized coverage for risks such as wildfires and earthquakes. Despite its small market size, Vermont has become a key hub for captive insurance, drawing specialists who tend to stay in the industry longer.
Age Groups in the Insurance Field
Although the insurance industry presents a promising career path for those entering the workforce, it is mainly dominated by older agents, with most over 36 years of age. However, 52.8% of agents in the data set did not disclose their age, providing only a partial picture of the demographic breakdown.
Types of Licenses Among U.S. Insurance Agents
Life insurance is the most common license type among U.S. insurance agents, followed by health, casualty, and property insurance. The popularity of life insurance stems from its broad customer base, high commission potential, and relatively straightforward licensing process. Health insurance ranks second, driven by regulatory demand and the ongoing renewal of policies. Casualty and property insurance, contrastingly, require specialized expertise and are subject to greater regulatory hurdles, making them less common among agents.
