2026 agency trends outlook

Independent agency professionals share their expectations for the year ahead

Insurance agencies looking at the 2026 agency report by Vertafore.

A year of opportunity and change

What agency professionals expect from 2026

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. 

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Snapshot of the year ahead

Agency professionals are keeping an eye on these trends and taking steps to stay ahead.

  • 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 when it comes to 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. 
     
Insurance agent looking at 2026 trend report
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Who we heard from

Insurance agency staff for 2026 agency trends chart
Insurance agency roles for 2026 trends
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At the intersection of innovation and trust

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.

Outlook on AI adoption
in 2026

23%
Confident: AI will transform everyday work

39%
Curious: Agencies explore uses cases and learn

29%
Cautious: Agencies are waiting for proven results before adopting

9%
Skeptical: AI is still more hype than help

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Top 5 factors that will help agencies get the most value from AI in 2026

Not all applications of artificial intelligence are equal. Agency professionals told us they want AI that’s built into the places they already work, accurate, secure, and easy to use. They also believe they'll get value from use cases that are specific to how our industry operates. 

5 factors for insurance agencies with AI
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Insurance agency reviewing technology trends

Where agencies expect AI to help most

Agents want AI to enhance their expertise, not replace it. In 2026, agency professionals are looking to spend more time on client-facing functions and to reduce administrative tasks such as data management and reporting; efficiency; and rating, quoting, or underwriting.

That lines up with what clients want, too. Our recent client survey found that 85% what to know when their agent is using AI.

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Where AI will create the
most practical value in 2026

AI practical value for insurance agencies icons

AI strategies to help your agency
get ahead in 2026

Move past the pilot stage: Pioneering AI uses will provide a competitive advantage.

Choose flexible technology: Working with a tech partner that offers open platform integration allows your agency to fit tested and trusted AI into your workflow.

Develop a human-AI system: Policyholders and agents alike say the human touch is essential in insurance.

Expand your AI journey with Vertafore

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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. 

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Expectations for the insurance market
Expectations for E&S placements in 2026
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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.

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Technologies that will deliver the strongest ROI in 2026

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You aren't alone

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. 

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Leadership responses

Independent agency leaders’ confidence about AI and technology

Agency owners and principals say they’re more confident than non-owner respondents about widespread AI adoption in 2026…

Agency owners are more confident in AI adoption bar chart

But feel less prepared to keep up with tech and market changes this year. 

How prepared is your agency for technology and market changes in 2026?

How prepared is your agency?

How independent agencies can use their tech stack to stay a step ahead in 2026

  • Emphasize client satisfaction and communication
  • Use tech to smooth operations and streamline processes
  • Expand your sales capabilities in an increasingly competitive market

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.
Talk with a Vertafore representative to find the right solutions for your agency.
 

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Posted February 6, 2026 in Ebooks & Whitepapers

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