For many agencies, the past few years have involved tough decisions—moving business to any market willing to write it, shifting accounts from standard to E&S carriers, and adjusting to tightening appetites and unpredictable underwriting. Now, as some standard carriers begin easing restrictions and reopening classes of business, it’s time to take a closer look at your book of business—and how balanced your carrier relationships really are.
Depending too heavily on one carrier may have made sense during the height of the hard market, but it can quietly introduce risk. As conditions change, agencies with flexibility through multiple carrier relationships will be better positioned to serve clients, restore profitability, and take advantage of emerging opportunities.
What Overdependence Looks Like
A strong carrier relationship is an asset—until it becomes a constraint. When a large percentage of your book is concentrated in a single market, your agency may be exposed to shifts in appetite, commission structures, or underwriting guidelines that are beyond your control. It can also limit your ability to offer competitive options or tailor coverage to client needs.
Some signs that your agency may be overly reliant on one carrier include:
- Most new business automatically being directed to the same market
- Difficulty placing risks outside a core appetite range
- Limited leverage when negotiating service, support, or compensation
- A contingency bonus structure that strongly depends on one carrier’s performance
In a more stable or growth-focused market, these issues can be easy to overlook. But when conditions change, they can create real vulnerabilities.
Why Now Is the Right Time to Re-evaluate
During the peak of the hard market, many agencies placed business wherever coverage was available—often outside their preferred carrier lineup. Carriers like Progressive or various E&S options stepped in where others pulled back, tightened guidelines, or paused growth in key segments. That strategy made sense under the circumstances. But today, some standard carriers are re-engaging. Appetite is shifting, and opportunities are re-emerging to align business with carriers that offer stronger long-term value.
These include broader eligibility, improved pricing, enhanced service, and renewed access to programs like profit-sharing and marketing support.
This is not just about moving business for better compensation—it’s about restoring balance. Reconnecting with strategic carrier partners ensures your agency is positioned for sustainable growth in a more competitive environment.
Diversification Without Disruption
This process doesn’t require a complete overhaul. The goal is to take inventory of where your business is placed, evaluate risk exposure, and begin shifting placements where it makes sense, especially for renewals or accounts that were moved out of necessity rather than fit.
For many agencies, E&S and brokerage relationships became essential during the hard market—and they remain a vital part of a well-rounded market strategy, especially for niche or hard-to-place risks. As the market shifts, however, it’s worth reassessing whether some standard business that was placed in E&S out of necessity may now be eligible for return to core markets. In some cases, moving back could offer benefits like improved pricing, broader coverage options, or eligibility for profit-sharing and support programs.
Future-Proofing Your Growth
Building a more balanced carrier mix is about resilience. It gives your agency options when change happens, strengthens your negotiating position, and allows you to remain client-focused instead of carrier-constrained.
The market is beginning to shift. Agencies that proactively evaluate and diversify their carrier strategies now will be better equipped to serve clients, improve revenue, and grow with confidence, regardless of what comes next.
