Bay State independent insurance agents have a $1.19 billion impact on state’s economy, according to a recent study commissioned by the Massachusetts Association of Insurance Agents.

The total number of full time equivalent employees of MAIA member agencies is 11,452.  The average independent agency employs 7.3 employees, with approximately 85 percent of the agencies having five or fewer employees.

The study was conducted by Tillinghast, the insurance consulting business of Towers Perrin. Results of the study revealed that the over 1,500 member agencies of MAIA play a significant role in the commonwealth as employers, taxpayers, consumer spenders and charitable contributors.

In addition to $950 million in wages and benefits paid to their more than 11,000 employees, Massachusetts independent insurance agencies contributed over $80 million in state and local taxes during 2007. This amount reflects property/real estate taxes, unemployment taxes and state income taxes. Federal income taxes and social security taxes were excluded from the study.

Approximately 78 percent of MAIA members rented, rather than owned, property for at least one agency location.  During 2007, these agencies paid rent totaling in excess of $56 million.  These rent payments provide additional income to local communities throughout the commonwealth.

Tillinghast surveyed 26 percent of MAIA’s membership. The 399 agencies surveyed represented all areas of the state, were of various sizes based on employees and premium volume and wrote different mixes of personal and commercial lines business.  Tillinghast then extrapolated the survey results for all MAIA member agencies to reach the conclusions included in the study. All study results are for the year 2007.