In a recent conversation with my predecessor, Jeff Grady, among other topics, we spent time talking about what FAIA’s membership looks like and the significant changes that have occurred over time. FAIA’s membership has never been static, but its evolution over the past two decades tells a deeper story about the changing structure of the independent agency system.
There was a time when the association was defined by a strong and stable middle. Many members were “middle of the market,” mid-sized agencies, often family-owned, operating with a goal of balancing their books at 60–80 percent commercial lines and 40–20 percent personal lines. Recall that prior to Hurricane Andrew in 1992, personal lines in Florida was the primary domain of captive agents. Conversely, commercial lines was where independent agencies were more dominant, and these firms were large enough to invest in people and specialization. Most were known for their close ties to local communities, which fueled relationships that drove their business. They were, in many ways, the industry's center of gravity and FAIA’s most engaged members.
Over time, that center has shifted.
Driven largely by sustained M&A activity, FAIA’s membership has taken on more of a barbell shape. On one end are larger, often national brokers (acquiring entities), bringing scale, capital, and increasingly complex operating models. On the other end is a growing number of smaller agencies that either haven’t been acquired or are relatively new, and often the residual effect of unprecedented M&A activity. Today, 85 percent of FAIA members report commission revenue under $1 million, with most of that revenue heavily concentrated in personal lines. The middle, once the defining feature of the association, has become much smaller.
It is easy to view that change as a loss, but it may be more useful to see it as a redistribution of opportunity.
As large brokers continue to scale, their focus naturally shifts upmarket. Their economics, infrastructure, and growth strategies all push them toward larger, more complex commercial accounts. That leaves a widening gap in the small- and lower-middle-market commercial segment, a space that still requires advice, values relationships, and depends on local knowledge.
For smaller agencies, particularly those that have leaned heavily on personal lines, this creates an opening that did not exist in the same way before. They are already embedded in their communities, they already have clients who own and operate small businesses, and they could benefit from a trust factor that larger, non-local organizations may have to work harder to build.
Stepping into the small- and mid-market commercial space is not just a tactical shift; it is a strategic one. It requires thinking differently about the business, moving from transaction to consultation, from quoting policies to advising on risk management. It may require investing in new skills, building different carrier relationships, or developing producers who are able to win more complex accounts. But the upside could be meaningful, more diversified revenue, stronger client retention, and a business model that is less exposed to the volatility of Florida’s property market.
Since its creation in the early 2000s, Citizens has served as both a backstop and a dominant market force, absorbing risks that private carriers could not or would not take on. Its growth from 2017 to 2023, driven by out-of-control litigation and carrier insolvencies, altered agent behavior and, in some ways, reduced the urgency for private carriers to compete aggressively for new business.
Now that dynamic is changing.
With Citizens’ policy counts dropping below 400,000, the conversation has shifted from depopulation to private market growth. Today, private carriers, particularly newer or newly capitalized homeowners' companies, are no longer simply managing exposure; they are looking to expand. They need policies, they need premium, and they need distribution to get there.
That is where the shift becomes interesting.
Because the constraint is no longer just capacity or rate, it is attention.
Agents, especially smaller agencies that make up a larger portion of FAIA’s membership, are already managing heavy personal lines workloads. They are navigating underwriting changes, service demands, and customer expectations in a market that has been anything but stable. Those demands aren’t waning, given the increased capacity and desire for homeowners' carriers to grow post-legislative reforms in 2022 and 2023.
That creates a different kind of competition. Not just for the policyholder, but for the agent's attention.
Carriers that want to grow in this environment will have to think beyond rate and coverage. They will have to earn relevance by being easy to do business with, offering consistent underwriting, paying competitive commissions, and delivering technology that actually reduces friction rather than adding to it. In a world where agents are stretched thin, simplicity, fair compensation, and reliability become powerful differentiators.
In this soft market, agents have more leverage than they may realize.
When multiple carriers compete for their attention, independent agencies can afford to be more selective, align with partners who support their business model rather than complicate it, and build profitable, sustainable books of business. That selectivity, if exercised thoughtfully, can reshape not just individual agencies but also the broader distribution landscape.
What makes this moment particularly compelling is how these trends intersect.
On the one hand, smaller agencies are looking for ways to grow, diversify, and move beyond a heavy reliance on personal lines. On the other hand, carriers are seeking productive agency partners to help them scale in a changing market. And in between, there is an opening in the small- and middle-market commercial space that aligns naturally with the strengths of local, relationship-driven firms.
This is not fragmentation; it is more like realignment.
For FAIA members, especially those on the smaller end of the spectrum, this is a moment that invites a decision. Continue operating within a narrow lane in an increasingly competitive personal lines environment, or expand the model, leaning into commercial opportunities, being more intentional about carrier partnerships, and investing, even incrementally, in capabilities that support growth.
None of that requires becoming something entirely different. In many ways, it is a return to what independent agents have always done best: adapting to the market in front of them, building relationships that matter, and finding opportunities where others may not be looking.
The shape of the membership may have changed, but the system's underlying strength has not.
What do you think independent agencies will look like in 10 years? Similar to today’s makeup, a throwback to years past, or something entirely different?