5 Agency Growth Strategies for Uncertain Times

• August 6, 2025

By Alicia Chandler

With all the uncertainties swirling about in the economy—tariffs, interest rates, trade deals—it can be tempting for independent insurance agency owners to take an ultra-conservative approach and avoid implementing growth strategies until issues settle. However, that’s a recipe for missing good opportunities.

Just because the economy isn’t as predictable as everyone would like it to be, it doesn’t mean it’s time to pull up the drawbridge and hide until the situation is less uncertain. Making smart moves to drive growth, both organic and inorganic, can keep a business thriving.

Opportunities come with risks, but there’s also a risk with inaction. While the insurance industry is all about protecting assets, it’s possible to make sound decisions that drive growth while also maintaining an agency’s strengths.

Business owners need to evaluate their own risk profile and choose opportunities that lie within it. Here are five pieces of advice on how even risk-averse insurance professionals can make the current economic environment work for them:

1) This isn’t everyone’s first rodeo. Current disruptions may seem new, but in reality, this is a movie everyone has seen before. The details of the issues are different, but being in a period of economic disruption is nothing new. We’ve seen two significant disruptions in recent years: the 2008 housing market collapse and Great Recession, and the business shutdowns and supply-chain problems caused by the pandemic.

Being overly intimidated by the uncertainties in today’s economy can keep a business owner from looking for and recognizing opportunities for growth. Staring the uncertainties in the eye and building a plan around them can help an agency owner not just survive but thrive in this challenging time.

2) Be willing to make decisions. Agency owners must continue making decisions and planning for the future, even amidst uncertainty. Waiting to decide on investing in tech equipment upgrades until the details of tariffs are clear means potentially waiting a long time—and going without the benefits it could provide.

The current trade negotiations are likely to be “framework deals,” not finalized documents, according to the New York Times. The reality is that it takes an average of 917 days—two and a half years—to move a trade deal from initial talks to final ratification by Congress. It may be a very long time before the full implications of tariffs are realized.

3) Interest rates are only part of the equation. Owners who are considering buying or selling a business may be waiting for interest rates to go back to pre-pandemic levels before making a move. However, several experts, including The Federal Reserve Bank of San Francisco, don’t believe much of a drop will happen anytime soon.

Yes, inflation is leveling out, but high government spending and debt continues to put upward pressure on interest rates. The growth of artificial intelligence (AI), and the expected surge in productivity it will unleash, is another factor that is likely to keep interest rates from drastically falling.

If a merger or acquisition (M&A) deal has good fundamentals and synergies, interest rates should only be part of the equation. Whether the Fed drops rates by 25 or 50 basis points ought not be the sole determinant of whether to move ahead with a sound transaction.

4) Growth is always a good idea. Growing your business organically, whether by attracting new clients, offering innovative services or investing in technology, is always a smart move. Not only does growth boost your current revenue, it also significantly increases your business’s value when you eventually sell it. Buyers are drawn to companies with a strong growth trajectory they can build upon, not those that have been stagnant.

Think of it this way: a runner doesn’t stop pushing before the finish line, and neither should a business owner.

Inorganic growth, or expanding through the purchase of another firm, can also be a highly effective strategy. There will always be business owners looking to sell, whether due to retirement or because they desire to leave the industry. Furthermore, acquiring another company can be an excellent way to bring in new talent, a practice sometimes called “acqui-hiring.” There are good M&A opportunities in every economic cycle. It’s important to be on the lookout for potential deals even during a time of disruption.

5) Keep the focus on people. It may sound trite, but it’s true: A company’s greatest asset is its people. It’s nearly always worth it to invest in initiatives that will help team members be more productive and make their jobs easier. Money spent on technology to free them from menial administrative tasks will likely be earned back many times over when team members can spend more time face-to-face with clients and prospects.

Alicia Chandler is president of Indianapolis-based Oak Street Funding, a First Financial Bank company, with customized loan products and services for specialty lines of business including certified public accountants, registered investment advisors and insurance agents nationwide.