New Decision Makers, New Risks and a Defining Moment for Independent Agents

• Sponsored by: The Hanover Group
• May 3, 2026

Independent insurance agents have always thrived in moments of change. They build businesses by translating complexity, advocating for clients and guiding insurance carriers through risk cycles that demand more than transactional expertise.

Today, that approach is being tested as ownership transitions accelerate, business owners become more informed through artificial intelligence (AI), and risk continues to intensify through litigation, technology and weather volatility. These are not incremental shifts. They are converging forces, reshaping the expectations of agent, carrier and client relationships and placing new pressure on how agents demonstrate value.

Millions of Businesses Changing Hands 

Over the next decade, business ownership transitions are expected to reach historic levels. According to McKinsey, about 6 million small and midsize businesses will experience ownership or leadership changes by 2035, creating what the firm describes as a new era of business stewardship. Many of these businesses will sell, recapitalize and transfer ownership as baby boomers retire, family businesses plan for succession or private equity partners become involved.

Many of these transactions bring new decision makers. Whether they are the next generation of leaders, financial buyers or strategic acquirers, these owners often approach insurance with a different lens. Coverage and services are no longer viewed simply as an annual renewal. They become part of a broader value equation tied to risk management, capital protection and long-term resilience.

For independent agents, ownership change is a familiar inflection point. New leadership often prompts a review of key service providers, including the insurance broker and overall insurance program structure. Agents who anticipate this moment protect their position, while those who wait until renewal face a greater risk of displacement.

AI Changes the Conversation 

Business owners are increasingly using AI tools to analyze risks, assess coverage and prepare insurance questions, a trend that will continue as these tools become more accessible and sophisticated.

This is not a threat to agents, but it does tighten the knowledge gap and raise expectations. Much like how WebMD changed the way patients engage with doctors, these tools are reshaping how business owners evaluate advisors, accelerating expectations and putting consultative value into focus.

The best agents will welcome this shift. More informed clients allow for elevated conversations that move beyond policy placement to deal structure, options and services. Agents add value by translating client questions, explaining trade-offs between certainty, cost and risk tolerance and guiding insurance strategy through ownership transitions. Those who understand transaction-related exposures, including representations and warranties, earn-outs and integration risk, can step into a critical advisory role before and after a deal, while agents without that expertise risk falling short of client expectations.

Risk Is Becoming More Complex and More Severe

Traditional insurance cycles still exist, but they increasingly mask a deeper change. Litigation severity continues to rise across many jurisdictions. Weather-related losses are altering long-term loss curves. New technologies are creating exposures not fully contemplated in current underwriting models.

This is less about a hard or soft market and more about a structural shift in risk. For clients, that means volatility and uncertainty. For agents, it raises the bar on technical knowledge, foresight and the ability to explain how emerging risks affect the business today and tomorrow.

Incredible Opportunity for Agents

The defining challenge for independent agents is not ownership change, AI or rising risk, but the combination of all three. New decision makers are entering the market at the same time buyers are more informed and expectations are rising.

As these forces converge, the agent value proposition is evolving. Relationships will always remain essential, but expertise and relevance determine staying power. Agents who succeed in this environment typically focus on a few core priorities:

1) Being embedded earlier in client decision-making, not just at renewal. Ownership transitions and operational changes often shift risk profiles well before renewal. Early engagement allows agents to advise proactively rather than reactively.

2) Anticipating and speaking fluently about ownership transitions and the risks they create. New decision makers reassess advisors as part of broader financial and operational reviews. Agents who understand how succession planning, private equity involvement or strategic transactions affect risk are better positioned to guide these discussions.

3) Embracing AI-informed clients without being threatened by them. Buyers with better information expect clearer answers. Agents who can translate complexity into practical guidance reinforce their value.

4) Viewing carrier relationships as strategic assets, not pure financial transactions. As losses grow more complex, carrier capabilities play an increasingly important role. Underwriting expertise, risk management support and claims capabilities can meaningfully influence outcomes.

Major shifts in the market have long separated transactional brokers from trusted advisors. Today’s market, defined by ownership turnover and more informed clients, is no exception. Independent agents who truly understand their clients’ risks, consistently communicate value and partner with carriers that bring distinctive solutions are positioned not just to adapt, but to help set the standard for the decade ahead.

By Matthew S. Mitchell, president, middle market, The Hanover Insurance Group, Inc.

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