After a few tough years of the most difficult operating environment in decades, which put carriers into survival mode, the insurance industry now appears poised to bounce back. Competition has returned, carriers have stabilized, and they are looking at independent agencies to help write more business. Meanwhile, funding is also flowing into the sector from carriers, tech companies and industry networks, offering agencies new levels of efficiency.
However, a beneficial market alone does not guarantee growth. The agencies that will thrive and continue to do so as conditions change are those with an effective strategy. They track the right metrics, seek the most viable opportunities, and use the most effective technology, all with a clear plan to grow their business.
Growing pains
While the insurance industry has returned to more solid ground, growth can bring friction depending on what stage of development an agency is in.
Startup agencies often struggle to land appointments with clients because they may have a limited track record, volume and infrastructure. Meanwhile, established agencies may have more subtle, and in some cases more costly, growing pains.
During the hard market, many agencies viewed premium growth as a primary indicator of health. However, while that looks good on paper, it does not necessarily mean the agency is growing. As rates have softened and premiums have fallen, agencies that weren’t tracking policies in force may discover their business was actually shrinking during those years.
Agencies must understand what business carriers want to write. Many insurance carriers have narrowed their focus in recent years, staying closer to their target markets and making fewer exceptions. Those that do not have a clear picture of each carrier’s risk appetite are likely wasting time and opportunities.
A foundation for long-term growth
Building sustainable agency growth starts with knowing where you stand and finding the right opportunities.
The first step is to ensure you are tracking the right metrics. As many agencies discovered during the hard market, revenue alone can be misleading. Meanwhile, the policies in place tell you only whether your book is actually growing or just inflating its rates. Using both numbers together offers a baseline for sustainable growth.
The next step is finding the right opportunities. Many look to niche markets because they can help the agency specialize in theseß areas and compel it to build a repeatable process. Once an agency has a proven playbook in a niche, it becomes less difficult to expand into adjacent lines. This also makes it easier to bring on new producers, because they can benefit from refined training around proven agency knowledge.
Read the full article, featuring James Keane, SIAA – The Agent Alliance Vice President
National Sales, published July 31, 2026, on The Rough Notes Company, Inc.