Where the opportunities are: An agent’s guide to the US insurance landscape

• Florida, with nearly 370,000 agents serving a population of 23.4 million, is by far the most crowded market in the country. That’s no surprise – hurricanes, floods, and an aging population drive demand across homeowners, health, and life, representing an interesting opportunity for agents willing to mix personal and commercial lines. Doing so could help to mitigate risk, and cross-selling other lines like life and flood could also help to bolster revenue. But with this high demand comes fierce competition. For agents operating in the Sunshine State, specialization is survival: Medicare Advantage, high-net-worth coastal property, or boutique risk consulting can help you stand out. 

• Texas, meanwhile, is home to about 355,000 agents and its population is fast growing, at around 2% per year since 2021. Its diverse economy – stretching from energy and agriculture to technology – has become fertile ground for agents able to expand into commercial, special risks, and excess and surplus lines such as oil and gas, construction, and cybersecurity and tech-related risks. These segments are growing in Texas and tend to carry higher margins if agents can navigate the underwriting complexities. Throw in the lack of state income tax – a feature it shares with Florida – and you’ve got one of the hottest markets for agents. Those who can balance commercial and personal lines are especially well-positioned. 

• California – despite being the nation’s most populous state, with 39.4 million residents – has only 189,035 agents, roughly half as many as Florida. The reason? Growth has slowed, people and businesses are leaving, and insurers are pulling back on homeowners due to wildfire risks and regulatory hurdles. But it’s not all bad news. Agents who can leverage technology and automation to reduce compliance burdens and broaden offerings beyond standard lines can still thrive. Think cyber insurance, pet insurance, or specialty liability to attract diverse client needs and hedge against natural disaster-induced market volatility. It’s less about volume and more about finding value pockets where clients still need trusted advice. 

Where agents are scarce 

At the other end of the spectrum, states like Alaska and Montana have far fewer boots on the ground compared to the rest of the country, at 2,138 and 2,503 agents, respectively. Even South Dakota, the “biggest” of the small states, only counts 7,134 agents.