Independent insurance agencies are in a period of transformation, with AI, market changes, and technological development reshaping the industry.
We surveyed more than 1,300 independent agency professionals from across the country. Their answers reveal the trends and actions that will shape success for agencies this year.
Trends snapshot
A changing market needs a new growth strategy. After multiple hard-market years, agencies expect the market to start to stabilize in 2026. More than 40% of our survey-takers expect modest easing across most lines of business, and a quarter expect more mixed conditions. While this takes some pressure off agents when it comes to placing risks, it could also mean flatter commission growth. Agencies will focus on client retention, operational efficiency, and new market opportunities to grow this year.
2026 will be a breakthrough year for AI adoption by agencies. Almost two-thirds of our respondents are optimistic about how AI can support their work, particularly in data management, reporting, and back-office efficiency. For most agencies, the value of AI lies in leveraging AI features and integrations in current systems. High-performing agencies are working with their tech partners to get the most out of these AI-based capabilities.
Insurance professionals see client engagement as the key to success. We asked what will separate high-performing agencies from the rest in 2026. The top answer by a landslide: client communications to drive satisfaction and retention. With changes in the marketplace and evolving client expectations, high-performing agencies are finding new ways to foster relationships with clients and emphasize their value as a risk advisor.
AI outlook: Agency professionals want to see AI in action
Generative AI is changing how work gets done in insurance. Carriers have been actively adopting AI to drive efficiencies and better outcomes in everything from workflows to underwriting. Now, in 2026, many agencies are poised to bring AI into their work to reduce manual work and uncover new growth opportunities.
Almost a quarter of our respondents are confident that AI will transform everyday work for agencies in 2026. And 39% believe agencies will spend the year exploring use cases and building up their AI knowledge. That outlook is consistent across agency sizes.
If you’re among the agencies already testing AI, the biggest opportunity is in moving AI programs beyond the pilot stage and into everyday workflows.
Market outlook: Agency professionals expect market stabilization in 2026
The recent hard market pushed premiums to new highs. But many independent insurance agency professionals say there is change ahead.
The largest share of agency professionals—42%—expect the market to stabilize, and a quarter say it depends on the line of business.
Industry analysts agree. Experts say premium growth will slow or decline through 2026. Throughout the hard market, insurance agencies have been placing more policies in the E&S market. Even with the prospect of market stabilization, agencies don't see an end to the E&S boom anytime soon. Nearly half say 2026 will look similar to 2025, and almost a third expect to place more E&S business this year.
Technology outlook: Agencies are investing in client experience
As pricing pressure eases, client satisfaction and retention become even more important. Agencies see the biggest payoffs in client communication to drive satisfaction and retention—and the technologies that support it.
• 52% of all respondents said client communication will separate high-performing agencies from the rest in the year ahead.
• 39% said streamlining operations so teams can work smarter.
Both responses go together. When technology makes teams more efficient, staff can spend more time on effective communication and client satisfaction.
Adapting to a changing landscape
More than half (55%) feel prepared or very prepared to keep up with technology and market changes this year.
Preparedness is related to agency size: At the largest agencies, 26% feel “somewhat prepared,” and 0% say they are not prepared at all. At the smallest, 49% say they are “somewhat prepared,” and 6% say they are not prepared.
If you want to improve your readiness, working with a trusted tech partner to develop an efficient tech stack can bring flexibility to stay on top of any changes that come. A trusted tech partner can empower your agency with the client communications technology, integrations that allow you to add AI and automation solutions to your tech stack, and get greater insights from your data to stay competitive in 2026.
Consider these measures to get ahead.
• Emphasize client satisfaction and communication
• Use tech to smooth operations and streamline processes
• Expand your sales capabilities in an increasingly competitive market
See the full trends report and find out what other agency professionals say they expect for the remainder of the year.