After years of rate inflation in nearly all lines of property and casualty insurance, 2026 offers some reprieve for
insurance buyers. Agents and brokers can no longer rely on agency growth through rate increases and exposure changes.
“We’ve been in a fairly high inflationary rate environment for the last five or six years in terms of rate inflation,” said Tony Caldwell, the founder of OAA (One Agents Al
liance), which is the top-ranked Strategic Master Agency of SIAA. “And that tends to mask real organic growth.”
Organic agency growth in the new year should get back to the basics of adding new business to the agency’s book and
with a clear plan to focus on retention. And those agencies in a position to buy might see a more vibrant merger and acquisition market to spur growth.
This report offers six recommendations from industry thought leaders on how to enhance agency growth in 2026: retention, bottom line, talent, alternative revenue, M&A, and innovation.
A Focus on Retention
Consumer dissatisfaction over sky high insurance premiums over the past several years will continue to drive considerable shopping.
Shopping rates for auto, homeowners, and rental insurance rose throughout 2024. While shopping cooled during the se
cond quarter of 2025, switching rates overall remained up, reported J.D. Power in July. For small commercial lines, retention rates fell significantly this year, according to another J.D. Power study released
in August. Customers cited competitive pricing as a key reason they select and stay with an insurer, but service is just as important for retention, J.D. Power said.
OAA’s Caldwell said retention is an area that agencies should focus on in 2026 as retention numbers for many agencies may have slipped due to hard market conditions, and the rapid run-up in prices.
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“I would suggest building a retention plan and making that a top business priority in 2026,” he said. “Measure you
r retention over the last three years, and whatever it is, set a goal to improve it.” Caldwell said it’s a lot easier to make money by increasing retention than it is to sell new business.
A focus on retention could also keep current customers from shopping around.
“Agents would do well to develop a strategy as to how they are best suited to respond to shoppers and keep their current clients from shopping,” said Chris Burand, f
ounder and president of Pueblo, Colorado-based Burand and Associates, and author of Insurance Journal’s monthly column, The Competitive Advantage.
Also, the agency should have plans to capture other shoppers, he added. Agencies that focus on capturing shoppers will win new business. The challenge might be that some agencies simply cannot respond we
ll to shoppers, Burand added. But those that do often have focused marketing programs specifically geared to attract shoppers.
“Along these lines, many carriers cannot support their agencies adequately in this environment,” Burand said. “They don’t have the financial wherewithal and/o
r lack the structure required. Agencies without the right carriers will not be able to take advantage of this growth opportunity even if they do everything else correctly.”
Many agencies that wish to improve retention may not know where to begin.
According to Caldwell, there’s no better way to start than simply going out and thanking current customers. “I don’t think we’re grateful enough for the business that we already have,” he said. “We write letters to say ‘thank you for your business,’ but when is the last time a producer took a client to lunch and the client said, ‘What’d you want to talk about?’ And the producer says, ‘I have one agenda item today–and that’s just to say thank you?'”
Another opportunity for more sophisticated clients and agencies is to utilize risk management tools to help decrease the need for insurance. This might also help with retention.
“Commercial clients should be primed to listen to this approach because high insurance premiums are a top-three expense that they must manage in the next year,” Burand said.