More from Liberty Mutual’s 2026 Independent Agency Growth Study

Our last look at Liberty Mutual’s 2026 Independent Agency Growth Study is client retention. The survey found it to be a top priority for agents this year. Liberty Mutual found agencies taking a more proactive and structured approach to retaining clients are improving their retention rate.

• 98% of agents say retention is very important to success in 2026

• The average retention rate in independent insurance agencies in 2026 is 84%

• 40% of agencies are retaining about the same compared to last year

• 18% of agencies are retaining 5% or more than they were a year ago

Those proactively reviewing policy coverages and insurance needs found a 73% improved retention rate compared to agents and agencies not being proactive. Over 63% had a flat or declining rate of retention.

Those helping clients better their understanding of policies and coverage had a 60% successful retention rate compared to 49% of those that didn’t.

Agents and agencies spending time educating clients on how the insurance market works, and the changing dynamics within the market, saw a 45% retention rate compared to 35% for those not making that effort. The offering of advice on risk mitigation saw a 32% retention verses 23%.

Those recognizing the loyalty of customers had a 20% improvement verses 13% of agents and agencies not doing so.

Agencies and agents with improved retention, or improving retention, are more likely to be have a formal process. It starts with communication being critical in retaining clients and improving retention:

• 40% say new, and improved, retention is because of new approaches to communication

• 32% improved retention by reaching out to clients once a month

• That compares to 24% with flat or declining retention

• 16% reach out weekly

• 7% of those with flat or declining retention don’t

When compared to five years ago, 95% — or even higher — are now more likely to talk to their clients about complex insurance topics and issues like these:

• 61% of agents with high retention rates talk with their clients about smart home devices

• Only 49% of low-retention agents do so

• 57% of successful agents and agencies cover telematics vs. 41% of those who don’t

• 50% of those improving retention talk about severe weather

• 37% of the non-improving agents and agencies don’t

And those agencies and agents embracing AI are improving retention:

• 52% of agencies with improved retention view AI as an opportunity

• That compares to 43% of agencies with flat or declining retention

• 51% with improved retention saved a lot of time using AI

• That compares to 35% of agencies with flat or declining retention

Lastly, agents and agencies giving back to their communities are more likely to have a high retention rate:

• 75% of agencies with a 95% or higher retention rate give monetary donations and support causes in their communities

• That compares to 65% of agencies with 70% or lower retention

• 47% of high-retention agents and agencies donate staff service or give volunteer hours in their communities

• 34% of low-retention agencies don’t

Source link: Liberty Mutual — https://bit.ly/4hZ27kK