By 2024 the carrier data tells a structural, not cyclical, story. Three years in, the smallest agencies are progressively more dependent on a shrinking carrier set, while the largest keep diversifying — the distribution-leverage gap the consolidation thesis predicts. This is the carrier slice of the Best Practices strategic context; the year's narrative is the 2024 context.
§ 01 · Commission concentrationThe 2024 read.
The gradient is sharper than ever. The smallest tier now draws 37.6% of P&C commission from one carrier and 59.1% from three — both the highest readings in the three-year series — while the largest sits at 8.5% and 17.1%.
| P&C commission concentration (2024) | Top-1 carrier | Top-3 carriers |
|---|---|---|
| Under $1.25M | 37.6% | 59.1% |
| $1.25M–$2.5M | 26.0% | 45.6% |
| $2.5M–$5M | 23.6% | 39.9% |
| $5M–$10M | 16.6% | 32.9% |
| $10M–$25M | 13.7% | 27.3% |
| Over $25M | 8.5% | 17.1% |
§ 02 · The three-year divergenceSmall up, large down.
The trend is the finding. The smallest tier's top-3 P&C concentration rose monotonically — 52.9% → 55.3% → 59.1%, a 6.2-point climb in two years, the steepest drift in the dataset. The largest tier moved the opposite way, easing to 17.1%. Carrier breadth confirms it: the smallest tier shed roughly a third of its commercial appointments (14.2 → 9.8) over the two years.
| Top-3 P&C concentration | 2022 | 2023 | 2024 |
|---|---|---|---|
| Under $1.25M | 52.9% | 55.3% | 59.1% |
| $5M–$10M | 29.2% | 29.1% | 32.9% |
| Over $25M | 20.5% | 17.7% | 17.1% |
§ 03 · What the divergence meansDistribution leverage by size.
The largest agencies are running a carrier-rationalization playbook — culling redundant appointments, consolidating volume on preferred carriers, and improving their concentration math as a result. The smallest agencies are experiencing the mirror image involuntarily: losing both breadth of appointments and diversity of revenue across the ones that remain. The lead carrier's line mix sharpens the contrast — mid- and large-commercial makes up two-thirds of the top carrier's book at the largest tier versus a sliver at the smallest.
- The divergence is structural. Smallest-tier top-3 concentration rose 52.9% → 59.1% over two years; the largest eased to 17.1%.
- Smallest tier shed a third of its carriers. Commercial appointments fell 14.2 → 9.8 — losing breadth and diversity at once.
- Largest tier rationalizes. Shed ~11 appointments and improved its concentration math.
- Top-1 dependency widest in the series. 37.6% (smallest) vs. 8.5% (largest) in 2024.
- Lead-carrier mix sorts by size. Mid/large-commercial is ~two-thirds of the top carrier's book at the largest tier.
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 three-year drift makes 2024 carrier appointments the primary diligence artifact for sub-$1.25M targets: at 59.1% top-3 dependency, losing any one of three carriers post-close materially impairs the book, and a buyer prices that with representations and holdbacks. The mirror finding validates the consolidation thesis — the smallest agencies are structurally vulnerable while the largest gain distribution leverage, which is precisely the dynamic behind the great consolidation.
The way carrier risk flows into deal structure is the financial & transactional mechanics reference.
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 2024 carrier section (286 agencies, calendar 2023 results) plus the 2022–2024 trend.
Concentration. The share of total P&C commission from the top-1 and top-3 carriers, on the full sample.
Smallest-tier caveat. Sub-$1.25M figures rest on a small sample; the multi-year direction is robust even where a single year is noisy.
Frequency. The study publishes annually. Milly Books refreshes this brief with each new edition.