Study details revenue growth at New York independent agencies

DeWITT — Two-thirds (67 percent) of New York independent-insurance agencies grew their revenue in 2013 compared to 2012, with the average revenue growth at 14 percent.

By comparison, 70 percent of independent agencies nationwide grew their revenue in the same time period, with an average revenue growth of 20 percent.

That’s according to an analysis of New York agencies that participated in the 2014 Agency Universe Study. 

Future One sponsored the survey. Future One is a collaboration involving the Alexandria, Virginia–based Independent Insurance Agents & Brokers of America, Inc. (IIABA) and other insurance companies that do business through the independent-agency system, according to the IIABA website. 

The DeWitt–based Independent Insurance Agents & Brokers of New York, Inc. (IIABNY) released the New York analysis on April 23.

IIABNY is a trade association that represents independent-insurance agents throughout New York. 

Future One conducts the survey to sample the views of independent agents nationwide and to see how the industry is performing nationally.

“It is the definitive study relative to the number of independent insurance agencies in the [U.S.] and the profile of those agencies,” says Richard (Dick) Poppa, president and CEO of IIABNY. 

Poppa spoke with CNYBJ on May 4.

The 2014 Agency Universe Study found New York insurance agencies “achieved greater revenue even while facing a difficult economy,” according to the IIABNY news release.

They reported revenue growth “despite the lingering effects of the 2007–09 recession and an economy that has lagged the rest of the country in recovery, particularly in the upstate counties.” 

Agencies can grow their revenue in two ways, says Poppa. 

“One is through new client acquisition and then the second is … the clients themselves having growth in their businesses,” he explains.

As a business of any kind grows, Poppa says, its insurance needs increase. For example, if a company adds more employees, it will to need more workers’-compensation insurance and perhaps more health insurance.

“For us, it’s a very positive reflection on the productivity of independent-insurance agencies, the resilience of independent-insurance agencies,” says Poppa.

The New York analysis also found that the state’s agencies are “fixtures” in their communities. 

The study found 55 percent of New York agencies have been in business at least 45 years. One-fifth of them started business before World War II. 

In the rest of the country, 30 percent are 45 years or older and only 13 percent pre-date the war, according to the IIABNY news release.

The analysis also found that New York independent agents like to work with New York–based insurers. 

Compared with their peers outside the state, the percentage of New York agencies representing large national companies, such as Progressive, Travelers, and 

The Hartford, is “substantially less,” according to the IIABNY news release. 

Large percentages of New York agencies represent local insurers such as Utica National Insurance Group, Buffalo–based Merchants Insurance Group, Dryden Mutual Insurance Company, and Edmeston, New York–based NYCM Insurance, the trade association said.

New York data

IIABNY last June asked IIABA, the national organization, and Zeldis Research Associates, a Pennington, New Jersey–based research firm, if they would extract 

data specific to New York state agents and compare it to the national study.

The information that IIABNY released was based upon a New York sample pulled from the overall national Agency Universe Study, says Poppa. 

Zeldis started its work with the online survey in the fall of last year and finished gathering data early in 2015, he says. 

In order to provide as “rich” data on New York agents and brokers as possible, the IIABNY communicated to its membership the importance of responding to the 

2014 Agency Universe Study.

“We wanted to make sure that we got enough responses that it was going to be statistically valid,” says Poppa. 

Nearly 280 agents responded, compared to the 111 responses to the 2012 study, the IIABNY said. The organization didn’t take “special steps” to encourage responses to the 2012 study, it added.

Researchers have conducted the survey once every two years over the past decade, Poppa believes. 

Study participants included 22 agencies from New York City, 114 from Long Island, 35 from downstate, and 108 from upstate counties, according to the study.             

DeWITT — Two-thirds (67 percent) of New York independent-insurance agencies grew their revenue in 2013 compared to 2012, with the average revenue growth at 14 percent.

By comparison, 70 percent of independent agencies nationwide grew their revenue in the same time period, with an average revenue growth of 20 percent.

That’s according to an analysis of New York agencies that participated in the 2014 Agency Universe Study. 

Future One sponsored the survey. Future One is a collaboration involving the Alexandria, Virginia–based Independent Insurance Agents & Brokers of America, Inc. (IIABA) and other insurance companies that do business through the independent-agency system, according to the IIABA website. 

The DeWitt–based Independent Insurance Agents & Brokers of New York, Inc. (IIABNY) released the New York analysis on April 23.

IIABNY is a trade association that represents independent-insurance agents throughout New York. 

Future One conducts the survey to sample the views of independent agents nationwide and to see how the industry is performing nationally.

“It is the definitive study relative to the number of independent insurance agencies in the [U.S.] and the profile of those agencies,” says Richard (Dick) Poppa, president and CEO of IIABNY. 

Poppa spoke with CNYBJ on May 4.

The 2014 Agency Universe Study found New York insurance agencies “achieved greater revenue even while facing a difficult economy,” according to the IIABNY news release.

They reported revenue growth “despite the lingering effects of the 2007–09 recession and an economy that has lagged the rest of the country in recovery, particularly in the upstate counties.” 

Agencies can grow their revenue in two ways, says Poppa. 

“One is through new client acquisition and then the second is … the clients themselves having growth in their businesses,” he explains.

As a business of any kind grows, Poppa says, its insurance needs increase. For example, if a company adds more employees, it will to need more workers’-compensation insurance and perhaps more health insurance.

“For us, it’s a very positive reflection on the productivity of independent-insurance agencies, the resilience of independent-insurance agencies,” says Poppa.

The New York analysis also found that the state’s agencies are “fixtures” in their communities. 

The study found 55 percent of New York agencies have been in business at least 45 years. One-fifth of them started business before World War II. 

In the rest of the country, 30 percent are 45 years or older and only 13 percent pre-date the war, according to the IIABNY news release.

The analysis also found that New York independent agents like to work with New York–based insurers. 

Compared with their peers outside the state, the percentage of New York agencies representing large national companies, such as Progressive, Travelers, and 

The Hartford, is “substantially less,” according to the IIABNY news release. 

Large percentages of New York agencies represent local insurers such as Utica National Insurance Group, Buffalo–based Merchants Insurance Group, Dryden Mutual Insurance Company, and Edmeston, New York–based NYCM Insurance, the trade association said.

New York data

IIABNY last June asked IIABA, the national organization, and Zeldis Research Associates, a Pennington, New Jersey–based research firm, if they would extract 

data specific to New York state agents and compare it to the national study.

The information that IIABNY released was based upon a New York sample pulled from the overall national Agency Universe Study, says Poppa. 

Zeldis started its work with the online survey in the fall of last year and finished gathering data early in 2015, he says. 

In order to provide as “rich” data on New York agents and brokers as possible, the IIABNY communicated to its membership the importance of responding to the 

2014 Agency Universe Study.

“We wanted to make sure that we got enough responses that it was going to be statistically valid,” says Poppa. 

Nearly 280 agents responded, compared to the 111 responses to the 2012 study, the IIABNY said. The organization didn’t take “special steps” to encourage responses to the 2012 study, it added.

Researchers have conducted the survey once every two years over the past decade, Poppa believes. 

Study participants included 22 agencies from New York City, 114 from Long Island, 35 from downstate, and 108 from upstate counties, according to the study.