Retention Success Happens Beyond Renewal, Says Liberty Mutual Study

• By: AnneMarie McPherson Spears
• July 15, 2026

After several years of hard market conditions, independent insurance agencies are placing renewed emphasis on keeping the clients they already have—and the agencies making the most progress are not relying on renewal conversations alone, according to recent findings from Liberty Mutual.

The “2026 Independent Agency Growth Study” from Liberty Mutual’s Agent for the Future, which surveyed nearly 1,200 U.S.-based independent agency principals and staff, found that 98% of agents say retention is very important to agency success, ranking ahead of every other priority, including acquiring new business.

While the average agency retention rate hovers around 84%, only 18% of agencies reported retention increases of 5% or more over the past year. The agencies that have increased retention are finding success by building repeatable processes around communication, policy reviews, client education and risk guidance throughout the customer life cycle.

Client expectations have changed significantly over the past five years, the study found. More than half of agents—55%—said clients now place greater importance on real-time updates about claims, renewals and policy changes. Another 51% said transparency in policy terms and pricing has become more important, while 47% said clients expect greater access to self-service options.

At the same time, agents are having more complex conversations with clients, increasingly discussing risks such as cybersecurity, smart home devices, severe weather and artificial intelligence (AI). This underscores the fact that retention is becoming less about a single annual transaction and more about ongoing advice, responsiveness and clarity, according to the study.

Trust remains central to those relationships. Agents identified top factors to building trust as clear communication, straightforward explanations of coverage and policy options, avoiding jargon, following through on promises, and responding quickly. Agencies with improved retention are more likely to turn those behaviors into formal operating habits, the study found.

Compared with agencies where retention was flat or declining, agencies with improved retention were roughly 10% more likely to have standardized processes for proactive policy reviews, helping customers understand coverage, educating clients on insurance market conditions and offering risk mitigation advice beyond the insurance products the agency sells.

Among agencies with improved retention, 32% proactively reach out to clients at least once a month, compared with 24% of agencies with flat or declining retention. However, the report notes that frequency alone is not enough. Agencies with stronger retention are finding relevant reasons to engage clients beyond the moments when a coverage change or renewal is due.

For agencies with the highest overall retention rates—95% or higher—risk mitigation emerged as a common communication theme. Those agencies are especially likely to talk with clients about emerging risks, including smart home devices, severe weather and telematics.

Technology is also part of the picture. Agencies with improved retention were more likely to view AI as an opportunity rather than a threat—52% compared with 43% of agencies with flat or declining retention. They were also more likely to report that AI tools have saved them a notable amount of time—51% compared with 35% of other agencies.

The study notes that agencies may also be using technology to create capacity for more personal engagement. In a market where clients expect faster responses and clearer information, time saved on administrative tasks can help staff focus on the relationship-building activities that support loyalty.

Community involvement was another differentiator among agencies with top-tier retention. Among agencies with retention rates of 95% or higher, 75% said they provide monetary donations to support causes, and 47% said they donate staff volunteer hours.

As the market continues to evolve, agencies that build retention into everyday operations may be best positioned to protect their books of business and create growth opportunities.

“Retention isn’t won at renewal. It’s built in every conversation, every follow-up, every moment an agent shows up for a client,” said Shannon Chatman, Agent for the Future advisor. “As the market softens, agents have an opportunity to be more intentional about how they build and maintain client relationships throughout the entire life cycle.”

While retention is agencies’ No. 1 priority, these retention-building habits also support new business. The study found that 31% of agencies reported acquiring 10% or more new clients than they did a year earlier. Agencies improving acquisition were also more likely to formalize policy reviews, client education and risk mitigation conversations, and more likely to share information about their community involvement.

Additionally, 32% of agencies with improved acquisition had implemented an AI tool or planned to do so soon, compared with 19% of agencies with flat or declining acquisition. Nearly half said they had saved a notable amount of time by using AI.

AnneMarie McPherson Spears is IA news editor.