Retention Strategies That Work: How Insurance Agents Can Thrive in a Changing Market

The insurance landscape is evolving quickly, and independent agencies must adapt to remain competitive. According to Dan McCarthy, CEO of ISU Steadfast, today’s most effective agencies operate less like traditional agents and more like proactive brokers. They don’t just renew policies; they approach the market, present multiple options, and serve as true advocates for their clients.

“Carriers have adjusted their underwriting appetites and product strategies in response to years of volatility and loss pressure,” McCarthy explains. “Our role now is to help agents protect clients by doing what’s in the client’s best interest, not just the carrier’s.”

Reading the Market: Risk, Recovery, and Regional Shifts

Although some lines are beginning to show signs of rate deceleration and renewed capacity, volatility remains common in general liability, excess liability, and certain property sectors. Regional exposures, including wildfires, hurricanes, and severe convective storms, have increased underwriting complexity in areas like Florida, Texas, California, and the Pacific Northwest.

“Carriers are making thoughtful decisions based on sound risk analysis,” McCarthy notes. “That sometimes means agents need to work harder to find the right fit, but the partnership with our carrier community remains central to long-term success.”

Adapting to Changing Risk Placement Options

As admitted market appetite has narrowed in certain lines, independent agents are turning more frequently to excess and surplus (E&S) markets. McCarthy emphasizes that this shift isn’t negative; it’s simply about placing risks appropriately.

“E&S markets are part of the modern solution set,” he says. “Agents shouldn’t see them as a fallback—just another path to protecting the client when traditional options are limited.”

Managing those paths, however, takes discipline. Agencies often work with multiple MGAs, wholesalers, and intermediaries, creating complexity that must be managed strategically.

“Access without strategy can create friction,” McCarthy explains. “Today, managing wholesale relationships is as important as maintaining direct carrier appointments.”

Using Technology to Strengthen the Agent’s Role

Artificial intelligence is transforming administrative workflows, from quoting and document parsing to claims assistance and client communication. But McCarthy sees it as an opportunity, not a threat.

“AI won’t replace agents. It will replace tasks,” he says. “That frees up agents to do what machines can’t—build trust, provide guidance, and deliver true risk advice.”

Adding Value Through Fee-Based Services

As risk complexity increases, many leading agents are introducing fee-based advisory models in addition to traditional commissions. Clients facing intricate insurance needs are often willing to pay for strategic guidance.

“Some of our members are already charging for consulting, placement, or renewal strategy work,” McCarthy says. “That shift reinforces the agent’s value and deepens the client relationship.”

Client-First Thinking Builds Long-Term Loyalty

McCarthy encourages agencies to focus less on the carriers they represent and more on the clients they protect. “You can’t be boxed in by yesterday’s appetite charts,” he says.

“Your job is to protect the client—and that sometimes means going further, working harder, or exploring unfamiliar markets.”

Strategic Partnerships That Fuel Growth

ISU Steadfast empowers its members with access to markets, tools, and peer collaboration that would be difficult to secure independently. This includes direct placement capabilities into the London market through HWS Specialty — a Lloyd’s broker recently acquired by ISU Steadfast’s parent company, Steadfast Group.

“We’ve built strong relationships with over 100 leading carriers in the U.S., and now, with HWS London, we’re extending that reach directly into Lloyd’s,” says McCarthy. “We already place significant business into the Lloyd’s market, and with this added capability, our members benefit from streamlined access, enhanced compensation, and broader global solutions.”

In addition, ISU Steadfast has negotiated incentive compensation agreements with the top 10 MGAs and wholesalers in the country, giving members broader access, stronger economics, and better tools to serve their clients.

The Bottom Line: Be the Advocate

Retention, in any market, starts with advocacy. And advocacy means putting the client at the center of every decision.

“You’re not just placing insurance,” McCarthy says. “You’re protecting someone’s business, their livelihood, their future. When you act like a true advisor, not just a policy processor, you create loyalty that outlasts any rate cycle.”

Real-World Success: The Weedin Agency

The Weedin Agency in Loveland, Colorado, joined ISU Steadfast just a few years ago but quickly began leveraging its broader market access to elevate their competitive position. As a boutique firm serving both commercial and personal clients, Weedin faced increasing pressure from regional and national brokers. With ISU Steadfast, they gained access to a deeper portfolio of admitted and non-admitted carriers, which enabled them to win new accounts, offer better coverage options, and retain key relationships. They've also tapped into ISU Steadfast's centralized resources and peer collaboration, helping them compete more strategically without sacrificing independence.