NAICS 524210 Quarterly Industry Report
Insurance Agencies and Brokerages
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 524210Sector: Finance and Insurance (52)Updated: Q1 2026
About This Report
This Fair Market Value report for NAICS 524210 examines the Insurance Agencies and Brokerages sector through financial analysis, valuation methodologies, and market data from the Census Bureau[6] and Bureau of Labor Statistics. Fair Market Value represents the price agreed upon between a willing buyer and willing seller in an arm's length transaction where both parties possess knowledge of relevant facts. Additional data is drawn from SBA[7].. For insurance agencies, valuation considers comparable sales, revenue multiples, earnings multiples, and factors including book quality, customer retention, and recurring revenue.
Industry Snapshot
Key metrics for the insurance agencies and brokerages industry.
Industry Definition & Overview
Insurance Agencies and Brokerages (NAICS 524210) encompasses approximately 135,939 establishments with 738,820 employees generating over $140 billion in annual revenue. These businesses act as agents and brokers selling annuities and insurance policies on behalf of insurance carriers without underwriting risk themselves. Employment remains strong, with insurance sales agents holding approximately 568,800 positions in 2024 and employment projected to grow 4% through 2034 per Bureau of Labor Statistics[5] data. Operations occur within a heavily regulated state-based framework overseen by individual state insurance departments and the National Association of Insurance Commissioners.
Regional variations impact agency operations and profitability, with factors such as population density, state regulatory requirements, and local risk profiles driving premiums and commission structures. According to the Census Bureau[6], establishments range from small independent agencies serving specific communities to large regional brokerages managing diverse portfolios. Compensation structures typically combine salary with commission-based earnings, with median annual wages of $60,370 for insurance sales agents in May 2024, though top performers exceed $130,000 annually. Technology adoption accelerates, with agencies implementing cloud-based platforms, artificial intelligence for risk assessment, and omnichannel customer experiences.
Insurance agencies serve as critical intermediaries connecting individual and commercial customers with appropriate coverage solutions. Agents and brokers provide consultation, policy comparison, claims assistance, and ongoing risk management advice. Over 2 million individuals and 236,000 business entities currently hold insurance producer licenses in the United States, demonstrating the substantial workforce dedicated to connecting insureds with coverage options across property, casualty, life, health, and specialty insurance lines.
What's Included in This Industry
- Personal lines insurance policy placement and sales
- Commercial lines insurance brokerage and consulting
- Employee benefits plan design and placement
- Policy comparison shopping across multiple carriers
- Risk assessment and coverage gap analysis for clients
- Claims advocacy and policyholder representation
- Policy renewal management and remarketing
- Surplus lines and specialty market placement
- Client account management and service
- Insurance program design for industry-specific needs
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Finance and Insurance | 52 |
| Subsector | Insurance Carriers and Related Activities | 524 |
| Industry Group | Agencies, Brokerages, and Other Insurance Related Activities | 5242 |
| NAICS Industry | Insurance Agencies and Brokerages | 52421 |
| National Industry | Insurance Agencies and Brokerages | 524210 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 524291 | Claims Adjusting | Claims Adjusting establishments investigate, appraise, and settle insurance claims on behalf of insurance carriers, working closely with agencies as agents refer customers to adjusters for claims handling and resolution. |
| 524298 | All Other Insurance Related Activities | All Other Insurance Related Activities includes actuarial services, insurance advisory consulting, and coverage consultation that agencies use to provide risk assessment and coverage recommendations to clients. |
| 524126 | Direct Property and Casualty Insurance Carriers | Direct Property and Casualty Insurance Carriers write property and casualty coverage distributed by agencies, creating a principal business relationship where agencies represent carrier products and earn commissions. |
| 524113 | Direct Life Insurance Carriers | Direct Life Insurance Carriers underwrite life insurance products sold through agency distribution channels, serving individual and group customers seeking term, whole life, and universal life policies. |
| 524114 | Direct Health and Medical Insurance Carriers | Direct Health and Medical Insurance Carriers partner with agencies for distribution of individual, small group, and large group health coverage while agencies manage enrollment and customer relationships. |
| 524130 | Reinsurance Carriers | Reinsurance Carriers include reinsurance intermediaries and brokers who place reinsurance contracts, representing a specialized segment of the broader insurance brokerage profession requiring advanced technical expertise. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.5% | 14,205 |
| 2 | Texas | 9.1% | 12,297 |
| 3 | Florida | 7.8% | 10,533 |
| 4 | New York | 4.8% | 6,421 |
| 5 | Illinois | 4.3% | 5,855 |
| 6 | Pennsylvania | 3.6% | 4,884 |
| 7 | Georgia | 3.4% | 4,639 |
| 8 | Ohio | 3.3% | 4,472 |
| 9 | North Carolina | 2.9% | 3,963 |
| 10 | Michigan | 2.7% | 3,700 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
6,880
Total SBA Loans
$2.7B
Total Loan Volume
$391K
Average Loan Size
11 yrs
Average Loan Term
10.33%
Average Interest Rate
37,984
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per SBA size standards[8], the threshold for NAICS 524210 (Insurance Agencies and Brokerages) is $7.5 million in average annual receipts over the most recent three fiscal years. This classification determines eligibility for SBA 7(a) and 504 loans, government contract set-asides, and other small business development programs. Agencies operating below this threshold qualify as small businesses under federal definitions. Size standards are adjusted periodically based on inflation indices.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 312 | $268.5M | $861K |
| 2 | U.S. Bank, National Association | 632 | $235.5M | $373K |
| 3 | Byline Bank | 272 | $222.5M | $818K |
| 4 | United Midwest Savings Bank National Association | 200 | $210.5M | $1.1M |
| 5 | Bankwell Bank | 112 | $163.9M | $1.5M |
Frequently Asked Questions
Common questions about this industry.
What is the difference between insurance agents and brokers?
Insurance agents typically represent one or more insurance carriers and are bound by carrier underwriting guidelines and product offerings. Brokers represent clients rather than insurance companies and can place business with multiple carriers to secure suitable coverage. Both are regulated by state insurance departments and must maintain producer licenses. Per the NAIC[9], state regulators oversee both agent and broker licensing, with more than 2 million licensed individuals and 236,000 business entities providing services. The Bureau of Labor Statistics[5] reports that insurance sales agents held 568,800 positions in 2024, encompassing both agents and brokers. Compensation structures differ, with agents potentially receiving salary plus commissions[10] while brokers operate primarily on commission or fee-based models.
How are insurance agencies valued for acquisition or sale?
Insurance agencies are valued using multiple approaches reflecting different perspectives on business worth. Revenue multiples of 1.5x to 2.5x apply to gross annual revenue based on book quality and customer retention. Per SBA[11] and industry transaction data, seller's discretionary earnings multiples average 2.68x, with 50% of agencies valued between 1.88x and 3.44x SDE. Commission multiples of 1.0x to 3.5x factor total annual commissions, with higher multiples reflecting superior performance. EBITDA multiples typically range from 8x to 12x for profitable agencies. Fair Market Value combines these approaches with comparable transaction analysis considering customer concentration, employee retention, revenue stability, and growth potential.
What regulatory requirements govern insurance agencies?
Insurance agencies operate within a state regulatory framework established under the McCarran-Ferguson Act of 1945, granting states primary authority over insurance regulation. State insurance departments oversee producer licensing, market conduct, rate adequacy, and insurer solvency, while the NAIC[9] provides model laws, accreditation standards, and regulatory coordination. All agents and brokers must obtain state producer licenses covering specific lines of authority such as property and casualty, life, health, or specialty insurance. Per NAIC[9] standards, state regulations establish continuing education requirements, ethical standards, and consumer protection[12] rules. Agencies must maintain separate trust accounts for customer funds and carry errors and omissions insurance.
How has technology impacted this industry?
Technology has transformed agency operations through cloud-based management systems, artificial intelligence applications, and digital customer platforms. Cloud adoption enables improved operational efficiency, data security, and remote work per BLS technology employment analysis[13]. AI and machine learning support predictive risk assessment, fraud detection, and personalized pricing. Digital-first platforms and mobile applications have shifted operations toward omnichannel customer engagement, reducing reliance on in-person interactions. Embedded insurance models create new distribution channels through partnerships with non-insurance entities at points of sale. Automation simplifies administrative tasks and reduces manual data entry.
What are primary employment opportunities in this industry?
Insurance agencies employ diverse roles including sales agents, customer service representatives, administrative staff, and management. Per BLS[10] data, insurance sales agents numbered 568,800 positions in 2024 with 4% growth projected through 2034. Median annual wages were $60,370 in May 2024, ranging from $31,530 for entry-level to over $130,000 for experienced professionals. Customer service and administration roles support agency operations handling renewals, inquiries, and documentation. Management positions include agency owners, office managers, and sales supervisors. Specialized roles include compliance officers, underwriting specialists, and data analysts.
What factors affect agency revenue and profitability?
Agency revenue derives primarily from earned commissions paid by carriers based on premiums sold, supplemented by contingency bonuses tied to retention targets and production levels. Customer retention rates critically influence revenue stability, as existing customers generate recurring commission income with minimal acquisition costs. Operating expenses including compensation, facilities, technology, licensing, and errors and omissions insurance consume 60 to 75% of gross revenue. Customer acquisition costs influence margins, with established agencies benefiting from lower costs than startups. Agency size impacts profitability, with larger agencies achieving economies of scale in administrative functions and technology investments.
How are agencies adapting to market consolidation?
The insurance agency sector has experienced sustained consolidation, with larger firms acquiring independent agencies to gain market share, geographic expansion, and operational scale. Independent agencies respond through specialization in underserved niches, development of superior customer service, and adoption of technology to compete with larger competitors. Many agencies pursue mergers or acquisitions to achieve growth or secure profitable exits for retiring owners. Per recent valuation data, median insurance agency sale prices reached $650,000 in 2025, up 51% from 2024, reflecting strong consolidation activity and investor interest. Employee retention and compensation competitiveness have become critical factors.
What is the outlook for employment and business growth?
The sector demonstrates moderate growth driven by expanding insurance demand, consolidation, and technology adoption. Employment for insurance sales agents is projected to grow 4% from 2024 to 2034 per BLS[5] projections, matching the average for all occupations. Growth drivers include increasing property and casualty needs from climate risks, cybersecurity threats, and business liability exposures. Health insurance demand expands as employers seek coverage solutions. Digital transformation creates opportunities for agencies adopting technology to reach underserved segments. Agencies with niche expertise, superior service, and modern technology are positioned for stronger growth.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]Census Bureau data.census.gov
- [7]SBA sba.gov
- [8]SBA size standards sba.gov
- [9]NAIC content.naic.org
- [10]salary plus commissions bls.gov
- [11]SBA sba.gov
- [12]consumer protection iii.org
- [13]BLS technology employment analysis bls.gov
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