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Data M10 The Market · Channel Share

The 2013 national-IA trough.

P&C distribution market share by channel for 2013 — the year national independent-agency carriers hit their series low in personal lines, while regional carriers held the channel and direct response neared 20% of personal auto.

2013 marks the bottom of the national-carrier personal-lines retreat — the national IA segment hit its series low — even as the independent channel overall held its ground on regional strength. The full arc is the channel-share trends tactical; this is the single-year reading.

§ 01 · Personal linesNational at the floor.

National IA personal-lines share fell to 7.8% — the lowest in the series — while regional carriers strengthened to 26.7%, holding the combined IA channel at 34.5%. Captive carriers sat at 50.6%, and direct response reached 14.9%.

Personal lines (2013)Share
National IA carriers7.8%
Regional IA carriers26.7%
IA channel combined34.5%
Captive / exclusive50.6%
Direct response14.9%

§ 02 · Commercial lines & autoThe moat holds; auto nears 20%.

Commercial lines held 79.2% IA share, direct response at 1.0%. In private passenger auto, direct response climbed to 19.1% — approaching the symbolic 20% line — while the national IA segment's PPA share thinned to 5.4% and regional carriers held 25.9%.

ChannelCommercial linesPrivate passenger auto
IA channel combined79.2%~31.3%
Captive / exclusive19.8%49.6%
Direct response1.0%19.1%

§ 03 · The signalThe national-regional divergence is structural.

2013 confirms what the prior years implied: inside the independent channel, national and regional carriers are moving in opposite directions in personal lines. National carriers are retreating to a structural floor; regional carriers are the reason the channel still competes. For a personal-lines book, which carriers hold the appointments matters as much as how much premium they write.

Key characteristics of the year
  • National IA at its series low. 7.8% of personal lines — the bottom of the retreat.
  • Regional carriers hold the channel. 26.7% personal lines, offsetting the national decline.
  • Direct response near 20% of auto. Personal-auto share to 19.1%.
  • Captive PL steady-to-eroding. 50.6%.
  • Commercial moat intact. IA at 79.2%, direct response at 1.0%.
What it means for M&A

The benchmark is the baseline, not the price.

Channel share doesn't value an agency — it frames the structural weather a book competes in. 2013 underscores the carrier-quality read: a personal-lines book carried by growing regional carriers is structurally healthier than one anchored to national personal-lines carriers retreating to a floor — exactly the kind of distinction a buyer surfaces in carrier-concentration diligence. The long-run pattern is the subject of channel-share trends.

Methodology notes

What this measures. Direct written premium by distribution channel, classified by IIABA from A.M. Best data into national IA, regional IA, captive/exclusive, and direct response.

Channel definition. A.M. Best has no native "direct response" category; IIABA assigns carriers to channels, so some affiliate premium is approximate.

Restatement. A.M. Best applies retrospective adjustments, so a given year's figures can differ slightly across editions.

Frequency. The report publishes annually. Milly Books refreshes this brief with each new edition.

The channel-share series

P&C channel share, year by year.

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