Insurance Agencies and Brokerages Revenue Benchmarks
The average insurance agencies and brokerages business in the United States generates $1.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 122,552 insurance agencies and brokerages businesses in the U.S., employing 769,558 workers with an average profit margin of 15.0%. The average employee in this industry earns $99K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Insurance Agencies and Brokerages Business Actually Do?
Independent agencies and brokers that sell insurance products from multiple carriers on commission. Cover P&C (home, auto, business), life, health, and specialty lines.
Who buys: Consumers buying home, auto, life; businesses buying commercial liability, workers' comp, cyber, and other coverages.
How this is different: Different from captive agents (State Farm, Farmers, Allstate — sell only one carrier's products) and direct writers (Geico, Progressive online).
Average Revenue
$1.7M
per year
Profit Margin
15.0%
industry average
Revenue / Employee
$269K
per year
Total Businesses
122,552
in the US
Est. Owner Income
$253K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
$99K
per year (BLS)
Market Saturation
37.0
firms per 100K people
How Much Do Insurance Agencies and Brokerages Charge?
Insurance agencies earn commission on premiums plus renewal commissions.
| Service | Typical range |
|---|---|
P&C first-year commission | 10–15% of premium |
P&C renewal commission | 10–15% of premium |
Life insurance first-year | 40–100% of first-year premium |
Life insurance renewal | 2–5% for years 2–10 |
Health insurance commission | 3–8% of premium |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete insurance agencies and brokerages business plan
A 12-section data-backed business plan for a insurance agencies and brokerages business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the insurance agencies and brokerages industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Claims & interest paid | $8 | $139K | Insurance claim payouts, interest paid to depositors, or securities transaction costs. |
Wages & benefits | $30 | $506K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $185K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $139K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $28 | $464K | Compliance, technology, professional liability, licensing fees. |
Net profit | $15 | $253K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
8.92%
openings/year
Closure Rate
9.79%
closings/year
Net Job Growth
+2.86%
annual
Businesses Closed
9,959
in 2023
Firm Count Trend
Should You Start a Insurance Agencies and Brokerages Business?
Startup Cost
$50K – $250K
Break-Even
7 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a insurance agencies and brokerages business do?
- Independent agencies and brokers that sell insurance products from multiple carriers on commission. Cover P&C (home, auto, business), life, health, and specialty lines. Consumers buying home, auto, life; businesses buying commercial liability, workers' comp, cyber, and other coverages.
- How much do insurance agencies and brokerages charge?
- Insurance agencies earn commission on premiums plus renewal commissions. See the pricing table above for typical rates by service type.
- How much does the average insurance agencies and brokerages make per year?
- The average insurance agencies and brokerages business generates $1.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $253K per year at a 15.0% profit margin.
- How many insurance agencies and brokerages businesses are there in the US?
- There are 122,552 insurance agencies and brokerages businesses operating in the United States, employing a total of 769,558 workers.
- How much does it cost to start a insurance agencies and brokerages business?
- Startup costs for a insurance agencies and brokerages business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the insurance agencies and brokerages industry?
- The average employee in the insurance agencies and brokerages industry earns $99K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The insurance agencies and brokerages industry is actively growing — adding jobs at a net rate of 2.9% per year. New establishments are opening faster than existing ones close (8.9% entry vs 9.8% exit), indicating healthy demand.
Approximately 60% of insurance agencies and brokerages businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 9,959 firms in this industry closed permanently.
Employment & Wages
The average employee in the insurance agencies and brokerages industry earns $98,918/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 158,383 establishments employing 970,751 people, the typical business has about 6 employees.
Industry Trend (2000–2023)
The insurance agencies and brokerages industry has grown 2% since 2000 (from 112,187 to 114,626 firms).
See full historical statistics →Compare Insurance Agencies and Brokerages revenue with other industries: