With a softer insurance market expected to gradually materialize in 2025, carrier capacity is anticipated to increase slowly. This shift in the insurance market presents new opportunities for independent agents to grow their businesses, provided they adopt the right strategies. From leveraging technology to aligning with carriers, consider the following five tips for independent agency growth in the year ahead:
1. Leverage Data to Work Smarter Agency management systems (AMS) provide extensive data that can drive growth.
These insights can identify opportunities for cross-selling, enhance retention strategies, and offer a clearer understanding of an agency’s book of business. A customer relationship management (CRM) system can complement an AMS by streamlining communication with current clients and prospects. For example, if a carrier focuses on a specific segment, such as restaurants, a CRM can help agents locate and follow up on past leads within that niche.
2. Align with Carrier Objectives Carriers are cautiously increasing capacity, prioritizing specific states, lines and business classes.
As this trend continues, agents who align their efforts with their carriers’ priorities will benefit from the reinforced relationship as the market becomes more competitive. Start with open conversations with your carrier representatives to understand their areas of focus. Are they expanding in different states or regions? Are they interested in personal auto, homeowners or commercial lines? By writing business that aligns with their goals, agents can increase profitability while strengthening their carrier relationships.
Read the full article, written by Steve Tombarelli, Senior Vice President, Programs & Services at SIAA, published March 7th, 2025, in The Standard. Reprinted with permission from The Standard, Copyright 2025, Standard Publishing Corporation, Boston, MA. All rights reserved.