Artificial intelligence (AI) in independent insurance agencies in 2026

This study marked the third year of our research exploring the attitudes, adoption, and impact of AI in insurance agencies, making it possible to see how behavior is changing over time.  

• Independent insurance agents who use AI for work save an average of four hours per week. 
• AI adoption is gaining momentum in agencies. Sixty-five percent of agents used AI for work in the past year, up from 37% in 2025. 
• Agencies mostly use AI for simple, assistant-level tasks today, such as generating marketing content and summarizing meeting notes, but they plan to expand into data analysis and workflow automation in the near future.
 

AI adoption is growing among individual insurance agents  

• 65% of agents used AI for work in the past year
  • Up from 37% in 2025 — a 75% increase in one year
• 41% of agents used AI weekly for work
  • Up from 18% in 2025
• 69% of agents expressed interest in using AI for work
  • Up from 57% in 2025
• 83% of AI users expect the frequency of their AI use to increase in the next year

Agents are starting to have more positive attitudes about AI  

• 45% of agents say AI is an opportunity rather than a threat 
  • Up from 28% in 2024 and 35% in 2025  
• 56% of agents agree that AI can make them more efficient
  • Up from 39% in 2024
• 52% of agents agree that AI will help grow their agency in the future
  • Up from 33% in 2024
• 70% of millennial and Gen Z employees believe AI can make their business more efficient  
  • Compared to 55% of Gen X and 42% of boomers
• 66% of millennial and Gen Z employees believe AI will help grow their agency in the future
  • Compared to 49% of Gen X and 42% of boomers

Agency use of AI is growing slowly but steadily  

• 43% of agents said their agency isvery likelyto implement AI into business practices in the next five years  
  • Up from 25% in 2024
• 14% of agents say their agency has already implemented an AI tool or solution
  • More than double the amount in 2025
• Larger agencies (11+ employees or $5 million or more in annual premium) are more likely than smaller agencies to have implemented an AI tool 

Individual use is outpacing oversight  

• 18% of agents say their agency has a well-defined policy on the use of AI
  • Up only slightly from 12% in 2025
• 29% of agency principals say they know enough about AI to make business decisions about the technology
  • Up only slightly from 26% in 2025 and 22% in 2024
• 22% of agents say they trust AI technologies with business data and client information
  • Up only slightly from 19% in 2025

How are insurance agencies using AI?  

Today, agencies primarily use AI to assist with tasks and help people complete routine work more quickly, but agencies plan to expand into more advanced uses. 

Current top uses of AI in agencies:  

• Generating content for marketing: 18% of agents say their agency currently uses AI tools for this activity  
• Transcribing and summarizing meeting notes: 17%  
• Comparing policy details for accuracy and gaps: 13%  
• Marketing automation: 10%  
• Automating routine tasks: 9%  

Planned future uses of AI in agencies:  

• Analyzing customer or agency data: 42% of agents say their agency will consider using AI tools for this activity in the next two years  
• Automating routine tasks: 41%  
• Marketing automation: 41%  
• Comparing policy details for accuracy and gaps: 39%  
• Generating content for marketing: 35%  

Client retention in independent insurance agencies 

Retention is a top priority for insurance agents in 2026. Agencies that are improving their retention take a more proactive, structured approach to retaining clients.  

• 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  

Agencies with improved retention are more likely to have formalized processes across key client engagement areas:  

• • Proactively reviewing policy coverages and insurance needs: 73% (improved retention) vs. 63% (flat or declining retention) 
  • Helping customers better understand policies and coverage: 60% vs. 49%  
  • Educating clients on changing dynamics of the insurance market: 45% vs. 35%  
  • Offering advice on risk mitigation: 32% vs. 23%  
  • Recognizing customers for loyalty: 20% vs. 13% 

All comparisons: agencies with improved retention vs. agencies with flat or declining retention.  

Agencies with improved retention communicate with clients more often and about more relevant topics  

• 40% of agencies with improved retention attribute the improvement to new approaches to client communications 
• 32% of agencies with improved retention reach out to clients at least once a month, compared with 24% of agencies with flat or declining retention  
• 16% reach out weekly, compared to 7% of those with flat or declining retention  
• Agents with the highest overall retention (95% or higher) are more likely to talk to clients about complex topics compared to five years ago: 
  • Smart home devices: 61% of high-retention agents are more likely to discuss this topic with clients than they were five years ago vs. 49% of low-retention agents  
  • Telematics: 57% vs. 41% 
  • Severe weather: 50% vs. 37% 

         Percentages reflect agents with 95% or higher overall retention vs. agents with 70% or lower overall retention 

Agencies with improved retention are more open to using AI  

• 52% of agencies with improved retention view AI as an opportunity, compared to 43% of agencies with flat or declining retention  
• 51% of agencies with improved retention say they have saved a notable amount of time using AI, compared to 35% of agencies with flat or declining retention  

Agencies with high retention are more likely to give back to their communities  

• 75% of agencies with high overall retention (95% or higher) provide monetary donations to support causes in their local communities vs. 65% of agencies with low retention (70% or lower)  
• 47% of high-retention agencies donate staff service or volunteer hours in their local communities vs. 34% of low-retention agencies  

How are customer expectations changing in insurance? 

Client expectations have shifted significantly over the past five years. Agents say customers increasingly expect real-time information, transparency, and digital convenience. Agents are also discussing more complex coverage and risks with clients, and working hard to build trust.  

• 90% of agents say keeping up with clients’ increasing expectations is very important to success in 2026

Agents say these client priorities have grown in importance over the past five years:  

• • Real-time updates on claims, renewals and policy changes: 55% of agents say this is more important to clients than it was 5 years ago  
  • Transparency in policy terms or pricing: 51% 
  • Capability to access self-service options online: 47% 
  • Same-day policy quoting and binding: 43%  

Agents are talking to clients about more complex topics than they were 5 years ago:  

• • Cybersecurity coverage: 60% of agents say they talk to clients about this more than they did 5 years ago  
  • Umbrella: 59%  
  • Smart home devices: 56%  
  • Artificial intelligence: 52%  
  • Severe weather: 51% 
  • Telematics: 50%  
  • Risk mitigation: 39% 

• Agents that focus on small commercial lines are more likely to have increased the amount they talk to clients about cybersecurity (76%) vs. agencies that focus on personal lines (54%) 
• Agents that focus on personal lines are more likely to have increased the amount they talk to clients about smart home devices (58% personal lines vs. 47% small commercial) and severe weather (53% personal lines vs. 43% small commercial) 

Agents agree on the attributes and actions that are critical for developing trust with clients:  

• • Be a clear and responsive communicator: 85% of agents say this is critical for developing trust with clients  
  • Make it easy to understand insurance and policy details: 83%  
  • Consistently follow through on promises made: 80%  
  • Make it easy to contact you or your agency: 79%  
  • Offer clear explanations of pricing and policy options: 78%  
  • Speak in plain language, not insurance jargon: 75%  
  • Follow up on client conversations quickly: 71% 
  • Conduct regular policy reviews: 51%  

Client acquisition in independent insurance agencies 

New business remains a top priority for agencies in 2026, and agencies that are growing their client base are more likely to be embracing AI tools and developing strategies to use them effectively.  

• 92% of agents say bringing in new business is very important to success in 2026 
• 31% of agencies are acquiring 10% or more new clients than they were a year ago  

Agencies with improved acquisition are more likely to use AI compared to other agencies:  

• • Already implemented an AI tool or solution: 19% of agencies with improved acquisition vs. 12% of other agencies 
  • Likely to implement AI into one or more business practices in the next 5 years: 53% vs. 39%  
  • Saved a notable amount of time using AI: 49% vs. 32%  
  • Have a well-defined policy on the use of AI: 25% vs. 14%  

Women in independent agencies

While women are still underrepresented in leadership roles in independent insurance agencies, the gaps are narrowing. Since 2023, women across all generations have reported meaningful gains in leadership aspiration, development, and optimism about their career growth.  

More women are aspiring to leadership  

• 62% of millennial women aspire to one day lead an agency  
  • Up from 50% in 2023  
• 41% of women of all generations say they aspire to lead an agency  
  • Up from 36% in 2023 

More women are being developed for leadership  

• 59% of millennial women say their manager is actively developing them for leadership  
  • Up from 38% in 2023  
• Equal numbers of millennial men and women say they are being developed for leadership  
• 45% of women of all generations say their manager is actively developing them for leadership  
  • Up from 30% in 2023  

More women say they have the skills they need to grow  

• 88% of millennial women say they have the skills to grow their career  
  • Up from 70% in 2023 
• 88% of women of all generations say they have the skills they need to grow their career 

Women feel more optimistic about their futures in agencies  

• 70% of millennial women say they are optimistic about their ability to grow in their agency  
  • Up from 56% who said they were excited about their future in the agency in 2023  
• 64% of women of all generations say they are optimistic about their ability to grow their career at their agency  
• 31% of women in agencies say they need more support or training to achieve their career goals 

Women report high levels of job satisfaction  

• 87% of women say they are satisfied with their current job at their agency  
• 78% of women say they can maintain a good work-life balance  

Women are still underrepresented in agency leadership  

• Women made up 22% of principals/owners, and 78% of agency staff  
• 52% of respondents said their agency has women in leadership