Mass. Agents Contribute $1.9B to the State’s Economy

As employers, taxpayers, consumers and charitable contributors, Massachusetts’ independent insurance agents make a $1.9 billion cumulative contribution to the Bay State’s economy last year, according to a new study by the Massachusetts Association of Insurance Agents (MAIA).

Data from the survey pegged the total number of full time equivalent employees of MAIA member agencies at 11,452, with the average independent agency employing just over seven people. Approximately 85 percent of the agencies had five or fewer employees.

In all, independent agencies accounted for a payroll of more than $837 million in 2007, as well $113 million in spending for employee benefits, including health insurance, pension and profit sharing and training costs.

In addition, Massachusetts’ independent insurance agencies contributed more than $80 million in state and local taxes in 2007. Rental fees were also a major spending item for agents last year: Approximately 78 percent of MAIA members rented property for at least one agency location, and total agency spending topped $56 million.

Massachusetts independent insurance agencies are also significant spenders when it comes to technology, office furnishings, supplies, equipment, advertising, legal and accounting services, repairs, maintenance, security and construction. In 2007, the MAIA’s study shows that agencies spent over $97 million in these areas of the economy.

Also, independent agencies contributed in excess of $8 million to charities.

Topics Agencies Massachusetts