The term “affordability” surfaced in the U.S. recently to describe the challenges many people are experiencing squaring their income with rising expenses.
Some of the trends driving the conversation include an uptick in rent and home prices over the last decade; inflation-driven price increases on such necessities as groceries, utilities and health care; and higher personal debt burdens paired with depressed wage increases and shrinking savings.
And although some national leaders purport that the “affordability crisis” is a political “con job,” write-in responses to 2025 Independent Insurance Agent Survey indicate today’s Main Street insurance businesses are struggling to navigate a difficult economic landscape.
For instance, when asked how hard market conditions impacted business over the last year, 37% of respondents reported that sales and renewals are down, and 63% said clients are amending coverages. When asked about concerns regarding the impact of tariffs on insurance costs, just over one in three respondents said they are, “Not at all concerned,” while the remainder of respondents are either “Very concerned” or “Somewhat concerned.”
The annual Independent Insurance Agent Survey is mounted by PropertyCasualty360 in partnership with the National Association of Professional Insurance Agents (PIA National). More than 700 respondents accessed the survey this year, however only those who reported working for an independent insurance agency were counted as part of the final survey results, making these findings a pure reflection of the state of affairs at today’s “mom and pop” insurance businesses.
To uncover additional analysis of the 2025 survey results, be sure to register and attend the upcoming webcast about the survey titled “Masters of Uncertainty.”
Pricing stress was one of the top trends reported in the survey, noted PIA National CEO Mike Skiados. “Rising premiums and affordability concerns dominate, with agents struggling to retain clients amid repeated rate hikes,” he said.
Respondents reported that some of the other key challenges facing today’s independent insurance agencies include:
- Anxiety around AI;
- Workforce challenges;
- Carrier relationships;
- Climate risk; and
- Regulatory burdens.
“These responses are similar to what we are hearing anecdotally” from PIA members, Skiados said.
But don’t take our word for it. The following are a sampling of the direct write-in responses survey respondents gave to the question: What, in your opinion, are the biggest challenges facing your insurance business in the coming year?
“Customer education with changes in the insurance industry.”
“A changing business marketplace. The financial health of our clients.”
“A shortage of claims due to people losing their homes.”
“An overall drop in business due to the continued rise in price.”
“Because of rate increases and changes in coverage it is getting harder to retain business.”
“Biggest challenge is the lack of seasoned or willing individuals to fill needed roles such as consulting and account management.”
“Carrier Continuity, Eroding Commissions, Large Carriers manipulating the market.”
“Carriers going direct to insureds with the advent of AI and also the loss of personal relationships with our clients.”
“Changes in market for a majority of the carriers, rate increases, and other potential factors causing clients to shop elsewhere.Something has to be done to retain clients.”
“Companies dealing [with] consumers directly or thru non-professional agents who only sell policies and don't explain the customer’s need. Agents and companies who are just making a ‘buck’ and not doing the ‘right thing.’We are in demand with clients who are smart enough to know they don't know everything and want to understand their coverage so they can make an informed decision.I can't keep up.”
“Creating the workforce professionals for our industries future. The industry does not have enough incoming trainees.”
PIA National’s Mike Skiados viewed the survey results as one tool that independent agents can use to get a leg up on business in the coming year. Among his tips:
- Pricing Strategy: Advocate for carrier collaboration to stabilize rates and improve transparency.
- AI Integration: Develop guidelines for ethical and effective AI adoption while maintaining human relationships.
- Talent Pipeline: Invest in recruitment and training programs targeting younger professionals.
- Market Access: Engage carriers on commission structures and appetite flexibility.
- Risk Management: Expand education on climate resilience and coverage options.
- Regulatory Engagement: Strengthen advocacy efforts to influence fair and practical regulations.
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