State of the Agency – 2021 report

In the wake of a worldwide pandemic and rapidly evolving market conditions, independent agents are embracing – and thriving in – a more progressive work environment.

This is the major trend revealed in our survey of more than 500 independent agency owners across the country, taken over the summer of 2021. The responses we received paint a picture of the industry's future, with agencies expected to offer additional employee flexibility, engage more with customers, and embrace technology to enhance customer and employee experiences.

Agency operations

Our survey found that the pandemic presented agents with an opportunity to reimagine their workplaces.

Agency resilience

Despite the challenges presented by the pandemic, our report found that:

"Customers have remained loyal to their independent agents. As agency owners look to the future, it’s more important than ever that agents maintain strong retention, working with carriers that can support – and continue to enhance – business models with increased flexibility for staff and increased digital accessibility and services to take customer and employee experiences to the next level."

– Dick Lavey, President, Hanover Agency Markets

Read Independent Agent article

Additional recent trends, reported by agents like you:

Agency growth and retention checklist

As you seek to set your agency apart from your competition, you can expect to continue to face challenging market conditions as many agencies try to re-imagine the future of their businesses. This checklist is based on conversations conducted with our survey that revealed trends, developments and evolving agency best practices, to help you retain momentum in the marketplace.

  Stay ahead of trends – Independent agents who understand emerging risks, such as extreme weather, cyber concerns, and workplace safety, will earn customer trust. 

  Embrace technology – Online, web- and mobile-based service tools keep today’s modern customer engaged, and agencies efficient. 

  Offer complete coverage – Independent agents have an opportunity to grow their business by writing the total account for customers. This practice can foster customer loyalty and help an agency grow its business.

  Communicate with customers – Increased communication builds customer relationships that last. Encourage customers to provide multiple points of contact, and establish regular touchpoints throughout their policy period.

  Work directly with underwriters – Partnering with carriers who offer a direct, local underwriting model can help you with more complicated and complex accounts. This enables you to offer the greatest flexibility and choice to tailor accounts for each customer.

  Retain talent – Employees expect the continued flexibility they experienced as a result of the pandemic. Agencies that offer  remote working options will experience higher volumes of employee retention. 

"The support of strategic carrier partnerships with advanced technologies help agencies thoughtfully address any obstacle customers may face. Additionally, the independent agent model continues to thrive and innovate in a modern working environment by being flexible with employees.”

– Angela Roman-Grimaldi, Vice President, Enterprise Distribution at The Hanover

We're dedicated to the success – and the future –
of the independent agency channel

Talk to your Hanover representative to see how The Hanover offers the service and innovations you need to continue meeting the evolving expectations of your customers – and build the agency of the future.