MAIA's most recent economic impact survey has found that local independent insurance agencies contributed an astounding $1.022 billion to the Massachusetts economy in 2017.
The study, which was commissioned by MAIA and conducted by Willis Towers Watson, sheds light on the substantial role played by the nearly 1,200 MAIA member agencies in the state as employers, consumers, taxpayers, and active participants of their local communities.
Employment Numbers and Tax Revenue
In 2017, MAIA members employed an estimated 9,050 full time workers in Massachusetts, with the average agency employing 12 individuals. Over that same period of time, these agencies combined to pay their workers over $714 million in salary and over $107 million in additional benefits such as health insurance, pensions, profit sharing, and training costs. Independent insurance agencies also contributed over $80 million in state and local taxes in 2017.
This commitment to Massachusetts as both employers and taxpayers is something that MAIA believes separates local independent agencies from online direct writers and other companies with little or no physical presence in the Bay State.
“Our members’ agencies have deep ties in their communities. They employ local people, support local businesses, and generate substantial tax revenue, all while serving consumers’ interests first,” said Nicholas A. Fyntrilakis, MAIA’s President & CEO. “Conversely, online direct writers often have little presence in the state aside from their websites and advertising campaigns, and are focused on how quickly they can generate the next sale, irrespective of the needs of the consumer.”
Rental Income and Consumer Spending
Two other revenue streams independent insurance agencies bring to Massachusetts are rental income and consumer spending. Total agency rental spending topped $36 million in 2017. These agencies also spent over $73 million on other expenses, such as technology, office furnishings, supplies, equipment, advertising, legal and accounting services, repairs, maintenance, security and construction, over that same period of time.
Ingrained in the Community
Further reinforcing the notion that independent agents are committed to their home state and communities, the study found that 11% of local agencies have been doing business in Massachusetts for over 100 years, while 37% of agencies are between 51-100 years old. MAIA members contributed a total of $8.6 million to charities in 2017 in addition to countless hours of volunteer work that they perform on behalf of local civic, cultural, and religious organizations. (See some of our members good works this year in our monthly "Good You Do" feature.)
Thank you to the members who took the time to complete the survey, which was distributed this May. The survey is an invaluable resource in our representation of the independent insurance agency community in Massachusetts.