Independent Insurance Agents Face Pricing and Workforce Challenges in 2026

Independent insurance agents in the U.S. are contending with multiple stressors as they prepare for 2026, amidst economic challenges impacting affordability for many clients. Rising premiums, inflation-driven increases in essential goods and services, and shifting consumer behaviors are contributing to a tightening market environment. These pressures are reflected in the 2025 Independent Insurance Agent Survey, which highlights declines in sales and renewals, as well as client coverages being amended in response to cost concerns. A key finding from the survey, conducted by PropertyCasualty360 in partnership with the National Association of Professional Insurance Agents (PIA National), points to pricing stress as a dominant challenge, with many agents struggling to maintain client retention against escalating premiums. Over 700 independent insurance agents participated, providing insights directly from the "mom and pop" insurance sector. Their feedback underscores issues such as customer education around industry changes, workforce shortages, and increasing competition from carriers and direct-to-consumer sales facilitated by technology like AI. Further challenges include the erosion of commissions, market manipulation by larger carriers, and difficulties in finding experienced professionals to fill critical roles within agencies. The changing business marketplace and financial health of insured clients also present hurdles, as increasing rates and coverage modifications drive some customers to shop around or reduce their insurance spend. Agents note the impact of consumer-direct marketing strategies that bypass traditional agent-client relationships, potentially undermining personalized service. PIA National CEO Mike Skiados suggests that understanding these market dynamics and survey data can help independent agents strategize effectively for the coming year. While the survey provides valuable industry benchmarking, the broader emphasis is on adapting to evolving client needs, improving customer education, and addressing workforce development to sustain agency growth and profitability amid ongoing market uncertainty.