By: Mike Golonka, Vice President, Strategic Partners — Smart Choice
Smart Choice Directors Mike Miller and Luke Royal lay out the groundwork for agencies that want to win in 2026.
In Summary: As the insurance market shifts from hard to soft in 2026, independent agencies have a rare opportunity for accelerated growth — but only if they prepare early. Smart Choice Directors Mike Miller, a 43-year industry veteran, and Luke Royal, Midwest Regional Director, outline the essential steps agencies should take now to thrive in the coming year.
Five Behaviors for Agency Growth in 2026
- Agility – Pivot quickly as carrier rates, appetite, and capacity change.
- Operational discipline – Strengthen prospecting, quoting, sales, and retention.
- Specialization – Build deep product knowledge and niche expertise.
- Intentional technology adoption – Use AMS, quoting tools, and AI strategically.
- Stronger partnerships – Leverage networks to expand access and support.
By focusing on clarity, adaptability, and strategic planning before January, agencies can position themselves for record-breaking growth in 2026.
Out with the old and in with the new. This mantra carries real weight for independent agencies heading into 2026, as the insurance market softens and growth opportunities emerge.
With the New Year fast approaching, now is the ideal moment for agencies to be proactive—developing a strategic business plan and tackling some internal housekeeping, according to Luke Royal, Smart Choice Midwest Regional Director.
A good plan will address questions like: What steps can we take to leverage the transition from a hard to a soft market? How can we pivot from defense to offense? What’s our growth strategy? Do we have the right market access? Do we have the staff and resources to achieve these goals?
Agencies should not wait until January to get these goals on paper. Royal suggests making the most of the “low season” at the end of the year because “carriers are going to be hitting the ground running in 2026.” He adds: “They’re already priming the pumps for new agency appointments, onboarding, engagement opportunities and incentives.”
To make 2026 your agency’s best year yet, start with the fundamentals, says Mike Miller, Smart Choice State Director with 43 years of industry experience. Getting the basics right — building a solid business plan, harnessing technology, optimizing workflows and strengthening relationships — positions agencies to succeed in any market.
Be agile and ready to pivot
As the market transitions, agencies should evaluate their carrier partnerships and understand how those carriers are positioning themselves. Are they reducing rates, offering more favorable terms or increasing capacity? These shifts can occur quickly and will ultimately influence where the strongest growth opportunities develop.
Royal recommends a short-term approach: “What carriers were doing in early 2025 could be dramatically different from how they're finishing the fourth quarter. Agents who thrived in the hard market were the ones who could pivot and adapt quickly to market changes — and they’ll need to hone that same skill and pivot toward carriers offering opportunities in this softening market.”
Miller emphasizes flexibility, advising agencies not to marry themselves to Plan A. He recommends having Plans B and C ready, all aligned with the same SMART goal — specific, measurable, achievable, realistic, and time-bound. “Maybe that company you've been generating leads from for five years just went out the back door, or maybe a key staff member leaves. Preparing well means having a Plan A, researching it quarterly, and being agile enough to adapt.”
Focus on the fundamentals
Now is the time to assess your agency’s core operational needs. Royal breaks this down into four pillars: prospecting, quoting, sales and retention.
“Every single agency will have a pain point in one of those four categories,” he says.“Some don't have the leads they want. Others have plenty of leads but lack the technology or processes to quote the business. And then there are agencies that prospect and quote well but cannot close the deal.”
Retention can be challenging in a soft market, where rates are competitive and consumers are enticed by the bottom dollar. Miller reminds agencies, it is much cheaper to retain a customer than it is to find and sign on a new one. Proactive retention plans — including renewal reviews, policy check-ins and thank-you campaigns — are essential.
Both Royal and Miller agree that how you sell a policy — and sell your value — has a profound effect on whether a customer stays with your agency. Miller notes: “Being detailed with clients nets you more business and helps you move the conversation from price to quality. Even for straightforward accounts, there is real value in being a true risk consultant.”
Be a specialist
In a crowded market where consumers have options, general agents can be drowned out. Specialization is key, according to Royal.
“That captive agent down the street, who represents one carrier, knows their policy inside and out — they can quote it in their sleep,” he says. Meanwhile, independent agents juggling 12 or more carriers can end up “bloated with information” and unable to speak confidently about any one policy.
That’s when bad habits creep in. “We start to see the emergence of the term ‘apples to apples.’ But no two policies are the same,” says Royal.
“As an independent agent, you must specialize, or you’ll be outmaneuvered by experts.”
“Your reputation is your currency,” Miller adds. Building a business of specialists through strategic hiring, training and intentional investments in technology can help set your agency up for success.
Harness technology
Being intentional about how you incorporate technology into your agency could make or break 2026 as your best year yet.
Miller stresses the importance of leveraging quoting software and agency management systems (AMS). “These tools can be huge advantages for your agency,” he says. “They save you time, help you quote and bind coverage quickly, and keep in touch with your current book of business.”
The right technology can optimize workflows by simplifying processes and reducing the number of steps and tools wherever possible. “If your team spends hours doing manual quotes, for example, find carriers that offer online quoting through [an AMS like] EZLynx or their own systems,” Miller adds.
When considering new technology, Royal warns against “chasing every shiny object.” Before diving in, it’s critical to analyze your agency’s needs and ensure you’re making the most of the technology you already have.
“Lots of AMSs have capabilities that agencies are paying for, but not using,” says Royal. “Before adding even more [technology], I would examine the tech partners and vendors already within your walls to determine if you’re using them to their full capabilities.”
AI has many use-cases for agencies today, from content marketing to fraud detection to enhancing customer service through chatbots and virtual assistants. Royal encourages every agency to explore that potential, while remembering “insurance is still a relationship business.”
“With a little intentionality, technology can magnify our personal interactions by taking away a lot of the noise in the background and giving more time for interviews and key touchpoints with your customer,” he says.
Use your network
Don’t go it alone if you don’t have to. There’s a lot of help out there for agencies looking for a leg up in a soft market. Joining an insurance network like Smart Choice can expand your market access, strengthen your operations, and keep you competitive — without reinventing the wheel.
Smart Choice provides agencies with access to over 100 leading carriers and 300 products. Most independent agencies do not write enough policies to gain access to these top-rated carriers on their own. As part of Smart Choice, agents can offer a diverse range of insurance options to their clients, enhancing their competitive edge.
Agencies in the network also receive robust training and local support through experienced territory managers, like Miller and Royal. These professionals, often former agency owners or carrier-side experts, provide deep knowledge of products and sales strategies, helping agents expand their businesses and diversify revenue streams.
“That is one of Smart Choice’s biggest differentiators,” says Royal. “We have local field reps who can provide hands-on guidance and act as a third-party advisor. They step in, assess your processes and offer their perspective from outside your agency. That level of local expertise and personalized support really sets us apart.”
Agent takeaways
A softening market creates opportunity, but only for the agencies that prepare early. Whether it’s analyzing your carriers, shoring up internal weaknesses, strengthening your specialty or embracing technology with intention, the foundation for agency success in 2026 should be built now and maintained through the year.
“A strong business plan doesn’t predict the future, but it does prepare you for it.”
FAQ—Preparing Independent Agencies for 2026
What should independent insurance agencies do now to prepare for 2026?
Agencies should create a strategic business plan, evaluate carrier partnerships, identify operational weaknesses, embrace technology, and take advantage of end-of-year “low season” planning time before carriers ramp up activity in 2026.
How will the shift from a hard to a soft market impact agency growth?
A soft market typically brings lower rates, expanded capacity, and more competitive carrier appetites — creating more opportunities for agents who can pivot quickly and align with the right carriers.
Why is specialization important for independent insurance agents?
Specialization helps agents build deeper product knowledge, offer better guidance to clients, and stand out from generalist competitors, while improving retention by shifting conversations from price to value.
What technology should insurance agencies focus on in 2026?
Tools like agency management systems (AMS), quoting platforms, automated workflows, and selective AI solutions help agencies increase efficiency, reduce manual work, and improve customer interactions.
How can joining an insurance network benefit an agency?
Networks like Smart Choice provide access to carriers agencies likely can’t reach on their own, plus hands-on support, training, and guidance from experienced territory managers who help optimize operations and drive growth.
What are the core fundamentals agencies should strengthen in a soft market?
Agencies should evaluate and improve the four pillars: prospecting, quoting, sales, and retention — ensuring that no stage of the customer funnel becomes a bottleneck.
How can agencies improve client retention in 2026?
Retention plans like renewal touchpoints, policy reviews, proactive communication, and value-based selling help agencies maintain long-term relationships and reduce churn in a competitive rate environment.
About the Author
Mike Golonka joined Smart Choice in 2021 as Vice President of Strategic Partners, bringing more than two decades of experience working with multistate independent agency networks and brokers. Before joining Smart Choice, Mike served as National Sales Director at MetLife Auto & Home, where he helped launch the IA National Accounts Division and secured Smart Choice as one of its first national account partners. He later transitioned to Farmers/Foremost, continuing to strengthen carrier–agency relationships on a national scale.
Mike’s background spans underwriting, project management, and regional sales leadership, giving him a deep, operational understanding of both carrier and agency operations. In his current role, he supports Smart Choice’s strategic carrier relationships and works closely with partners to drive growth and market expansion.