How the Current Insurance Market Is Affecting Agency Staffing
How the Current Insurance Market Is Affecting Agency Staffing
After several years of a hard market, commercial insurance pricing has cooled. For agencies and brokerages, that shift affects more than renewals. It’s changing how firms grow, and it’s changing who they hire.
What’s Happening in the Market
Commercial pricing has moderated steadily over the past year. WTW’s Commercial Lines Insurance Pricing Survey found that U.S. commercial prices rose just 0.5% in the second quarter of 2026, down from 2.5% in the first quarter and 3.8% a year earlier. Marsh’s Global Insurance Market Index reported that the overall U.S. composite rate declined 2% in the second quarter, with property leading the decline.
The market isn’t moving evenly, though. Marsh reported that U.S. casualty rates were still up 7% in the second quarter, as liability claims and litigation continue to put pressure on pricing.
For agencies, flatter premiums mean slower revenue growth. Reagan Consulting found that average organic growth for independent agencies and brokers fell from a peak of 11.2% in mid-2023 to 7.1% by the end of 2025. The 2026 Best Practices Study from the Big “I” and Reagan Consulting found that growth slowed for top-performing agencies in six of seven revenue bands, although profitability remained strong.
What It Means for Hiring
Here’s how we see these conditions shaping agency hiring:
Producers are in demand. When rate increases no longer drive growth, new business has to. Agencies are placing even more value on producers with a proven record of writing new accounts.
Retention matters more. In a softer market, clients shop their coverage more often and competitors are more aggressive. Experienced account managers who build strong client relationships play a direct role in protecting the book.
Marketing and placement skills stand out. With more carrier capacity available, there are more opportunities to remarket accounts and improve terms. Professionals who know the markets and can negotiate effectively are valuable, especially on property accounts.
Casualty expertise is still valuable. With liability pricing still firm, professionals experienced in complex general liability, auto and umbrella placements remain in demand.
Hiring is more deliberate. With growth slowing, many agencies are looking more closely at headcount. The focus is shifting toward experienced professionals who can contribute quickly, rather than adding staff for general capacity.
For Candidates
If you’re a producer, your new business results will carry significant weight, so know your numbers. If you’re an account manager, be ready to talk about client retention, how you’ve handled difficult renewals, and your experience remarketing accounts.
For Agencies
Strong candidates are still hard to find, even as the market changes. Agencies that plan ahead, offer clear compensation structures and move quickly through the hiring process are better positioned to attract the right people.
Market data referenced in this article reflects reports published through September 2026.