The 2023 carrier data caught the industry mid-rationalization: mid- and large-tier agencies trimmed their appointment lists, while the smallest agencies grew more dependent on their lead carriers. Read against the 2022 carrier data, the divergence begins here. This is the carrier slice of the Best Practices strategic context; the year's narrative is the 2023 context.
§ 01 · Commission concentrationThe gradient holds.
The dependency gradient is intact — top-1 P&C concentration still falls from the mid-30s at the smallest tier to single digits at the largest. The notable shift sits at the smallest band: its top-3 dependency rose to 55.3% (from 52.9% in 2022), even as its top-1 eased slightly.
| P&C commission concentration | Top-1 carrier | Top-3 carriers |
|---|---|---|
| Under $1.25M | 34.3% | 55.3% |
| $1.25M–$2.5M | 22.6% | 39.3% |
| $2.5M–$5M | 21.3% | 38.5% |
| $5M–$10M | 14.2% | 29.1% |
| $10M–$25M | 12.9% | 25.4% |
| Over $25M | 9.0% | 17.7% |
§ 02 · Carrier pruningThe appointment reset.
The year's headline is breadth, not concentration. Mid- and lower-large-tier agencies ($5M–$25M) shed five to eight commercial carrier appointments year over year — a rationalization consistent with carriers tightening their own appointment lists post-pandemic. Only the largest tier held its count.
| Commercial P&C carriers (avg) | 2022 | 2023 | Δ |
|---|---|---|---|
| Under $1.25M | 14.2 | 12.3 | −1.9 |
| $2.5M–$5M | 24.9 | 24.6 | −0.3 |
| $5M–$10M | 38.6 | 33.3 | −5.3 |
| $10M–$25M | 62.6 | 55.1 | −7.5 |
| Over $25M | 127.0 | 128.8 | +1.8 |
§ 03 · The diverging endsSmall tightens, large diversifies.
The two ends of the market moved in opposite directions. The smallest tier shed regional appointments and grew more concentrated in its top three — a single-point-of-failure risk building. The largest tier improved its top-3 concentration (20.5% → 17.7%), continuing to diversify at scale. The 2023 study also introduced a service-center-usage view, a margin-quality signal that varies more with carrier mix than with agency strategy.
- Mid-tier carrier pruning. $5M–$25M agencies shed 5–8 commercial appointments year over year.
- Smallest-tier concentration crept up. Top-3 P&C dependency rose 52.9% → 55.3%.
- Largest tier kept diversifying. Top-3 improved to 17.7% — the only band reducing concentration.
- The gradient held. Top-1 dependency still falls from 34.3% (smallest) to 9.0% (largest).
- Service-center usage introduced. A new 2023 view; a carrier-mix signal more than a strategy choice.
The benchmark is the baseline, not the price.
Best Practices benchmarks don't value an agency — they're the operating baseline a valuation is built on. The 2023 data sharpens two reads: a sub-$1.25M target's rising top-3 dependency is a leading single-appointment-risk indicator a buyer benchmarks against the latest year; and mid-tier carrier pruning means a $5M–$25M acquirer will typically find redundant appointments to rationalize post-close — while a target carrying far more appointments than its tier average may be appointment-hoarding without commercial necessity.
The way carrier risk flows into deal structure is the financial & transactional mechanics reference, and the full drift is the 2024 carrier data.
What BPS measures. The Best Practices Study tracks the operating and financial results of top-performing agencies, segmented by revenue tier. This brief reflects the 2023 carrier section (286 agencies, calendar 2022 results).
Concentration. The share of total P&C commission from the top-1 and top-3 carriers, on the full sample.
National vs. regional. The study doesn't publish a precise definition; national carriers are broadly distributed multi-line writers, regional carriers are state- or multi-state-focused.
Frequency. The study publishes annually. Milly Books refreshes this brief with each new edition.