In 2023, California led the nation in direct premium earned for property and casualty (P&C) insurance, with insurers collecting $88.1 billion. Texas followed at $70.9 billion, while Florida ranked third with $63.8 billion. These states also boasted the highest number of P&C insurance agents, a trend likely linked to their substantial premium volumes.
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Yet, when measured by estimated premium per agent, none of these states ranked among the top 10. Instead, Montana—home to the nation’s fewest P&C agents—topped the list, with an estimated $3.6 million in premium per agent. Alabama followed at $3.1 million, with Arkansas close behind at $2.8 million.
With the highest premium per agent, Montana emerges as the most favorable state for insurance professionals. Conversely, Ohio ranks as the least lucrative, with agents generating an average premium of just $592,920.
Montana’s small population, approximately 1.1 million, results in fewer insurance agents compared with more populous states. However, policies tend to carry higher premiums, particularly in agriculture, ranching, and natural resources. The state also has some of the nation’s highest auto insurance rates, driven by long rural highways where accidents tend to be more severe, a high percentage of uninsured motorists, and costly vehicle repairs due to rural conditions.
Ohio, on the other hand, has a dense concentration of insurance companies and agents, leading to heightened competition and lower premiums. Major insurers such as Progressive, Nationwide, and Cincinnati Insurance are headquartered there, increasing efficiency and keeping costs down. The state consistently ranks among the most affordable for car insurance, benefiting from a well-maintained highway system with lower accident severity, competitive pricing among insurers, and a low rate of uninsured drivers. Additionally, Ohio operates a monopolistic state fund for workers’ compensation, further stabilizing costs for businesses.
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The United States is home to 2,412,480 registered insurance agents, with nearly 40 percent concentrated in three states: Texas, Florida, and California—the nation’s most populous. Florida leads with 369,938 insurance agents, followed by Texas with 354,661 and California with 189,035.
Despite being the most populous state, California trails behind Florida and Texas in the number of registered insurance agents, with nearly half as many as Florida. One key factor is the absence of a state income tax in Texas and Florida, making them more attractive for agents and agencies seeking to maximize earnings.
Beyond their size, these three states also face some of the country’s most frequent and severe natural disasters, which fuel demand for insurance coverage. Florida contends with hurricanes, Texas with tornadoes, and California with wildfires, requiring a robust workforce of insurance professionals to manage policies, claims, and risk assessments.
At the other end of the spectrum, Alaska has the fewest registered insurance agents at 2,138, followed by Montana with 2,503 and Wyoming with 3,061.
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The gender distribution of insurance agents in the U.S. is slightly male dominated, with men accounting for 44.83 percent of the workforce. Women make up 39.08 percent, while the remaining 16.09 percent consists of individuals who did not register as male or female.
Although men do not represent most insurance agents nationwide, they outnumber women in most states. Only seven states—Texas, Georgia, Nevada, Mississippi, Hawaii, Wyoming, and Alaska—have a higher number of female agents than male.
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The U.S. insurance market is marked by a significant presence of young professionals, with 43% of agents holding between zero and five years of experience. As tenure increases, the number of agents gradually declines, with only 10% boasting 25 or more years in the field. However, California and Vermont stand out as exceptions to this trend, as they are the only states where most agents fall within the six to 15-year experience range.
California, home to one of the largest and most complex insurance markets in the country, is shaped by its vast population, diverse economy, and strict regulatory framework. As a result, the demand for seasoned agents remains particularly strong, especially in commercial lines, high-value home insurance, and specialized coverage for risks like wildfires and earthquakes.
Vermont, despite its smaller market, has emerged as a key hub for captive insurance. The state attracts professionals with niche expertise who often remain in the industry for longer, offering a contrast to the broader trend of shorter tenures in the sector.
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While the insurance industry is often seen as an attractive career path for young professionals, it remains largely dominated by older agents, with the majority being over 36 years of age. However, it's crucial to note that 52.8% of agents in the data set did not disclose their age, providing only a partial picture of the demographic makeup.
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Life insurance holds the distinction of being the most common license type among U.S. insurance agents, followed by health, casualty, and property insurance. Life insurance's popularity stems from its broad customer base, high commission potential, and relatively straightforward licensing process. Health insurance ranks second, driven by regulatory demand and the ongoing renewal of policies. In contrast, casualty and property insurance require specialized expertise and face higher regulatory barriers, making them less prevalent among agents.
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