Agency and brokerage organic growth slowsReprints
Independent insurance agents and brokers reported median organic growth of 5.8% for the second quarter of 2014, a weakening from 6.2% for the first quarter of 2014 and 6.9% for the second quarter of 2013, according to Atlanta-based Reagan Consulting's Organic Growth and Profitability survey.
“Although a 5.8% organic growth rate is still a healthy result, this makes the fourth straight quarter organic growth has remained flat or declined," said Kevin Stipe, president of Reagan Consulting, in a statement.
"This decline of organic growth appears to be tied directly to the softening P&C marketplace," he said.
But softening growth has not negatively affected profitability as yet due to continued growth in contingent income, according to Reagan Consulting.
"P&C contingent growth, for both commercial and personal lines, has delivered double-digit growth for two years,” said Mr. Stipe. “This has allowed for the impressive improvements in agency profitability."