Insurance Agencies and Brokerages — Business Survival Rate
An estimated 60% of insurance agencies and brokerages businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 9.8%.
Is Insurance Agencies and Brokerages a Good Business to Start?
With a 60% five-year survival rate, insurance agencies and brokerages has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.
The annual exit rate of 9.8% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net negative: more businesses closing than opening (-0.9 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 1,293,795 workers across 114,626 firms.
Want to know how much insurance agencies and brokerages businesses actually make?
See full revenue benchmarks for Insurance Agencies and Brokerages →Frequently Asked Questions
- What percentage of insurance agencies and brokerages businesses fail?
- Approximately 40% of insurance agencies and brokerages businesses fail within their first 5 years. The annual closure rate is 9.8%, with 9,959 firms closing permanently in 2023.
- Is the insurance agencies and brokerages industry growing or shrinking?
- The insurance agencies and brokerages industry is currently growing with a net job creation rate of +2.9% per year. New businesses are entering at 8.9% while 9.8% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.