This guide explains, in plain English, how often customers renew with an insurance broker and what drives those renewal rates in Oct 2025.
If you plan to start or grow an insurance brokerage, you must understand renewals because they determine stable, compounding revenue.
Across mature markets in 2023–2025, well-run brokerages consistently keep 90–95% of clients, with top performers reaching 93–96%—but product mix, pricing movements, and service quality make a big difference.
If you want to dig deeper and learn more, you can download our business plan for an insurance broker. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our insurance broker financial forecast.
Renewal rates for insurance brokers are high overall (typically 90–95%), but vary by product: life and home renew best, while auto is more price-sensitive. Early, proactive communication (about 90 days pre-expiry), clear pricing explanations, and strong claims handling are the core levers to protect retention.
First-term clients renew far less (≈65–75%) than multi-year clients (90%+). Independent brokers often match or beat large firms when they combine multi-carrier choice with hands-on service. Pricing shocks and poor communication remain the leading causes of churn.
| Key metric (Oct 2025 context) | Typical value / range | Notes for new insurance brokers |
|---|---|---|
| Overall renewal rate (last 3 years) | ~90–95% (best-in-class 93–96%) | Set 92% as a realistic Year-1 target; build toward 94%+ with service and carrier optionality. |
| By product line | Auto 76–85%; Home ~86%; Health 80–88%; Life 90%+ | Blend lines to stabilize retention; avoid overexposure to auto-only books. |
| First-term vs multi-year | First-term 65–75%; Multi-year 90%+ | Onboard hard in the first 90 days; aim to “graduate” clients into multi-line, multi-year status. |
| Independent vs large firms | Independents 87–93%; Large firms up to ~95% | Independents win with personalization + carrier choice; scale wins with process. |
| Decision window | 60–120 days pre-expiry; 90 days is standard | Start outreach at T-90 with pricing expectations, alternatives, and coverage tune-ups. |
| Switching carrier, same broker | ~20–30% of renewals | Make it easy to re-market without losing the client relationship. |
| Top churn drivers | Premium hikes, poor service, weak claims support | Communicate early on pricing; own the claims journey; keep multi-channel contact. |
What is the average renewal rate with insurance brokers over the past three years?
Across 2023–2025, most insurance brokers retain about 90–95% of clients each year.
Top-performing agencies with disciplined renewal processes and strong claims advocacy often reach 93–96%. Books dominated by personal auto sit toward the lower end; diversified books (home, life, commercial) trend higher. Mid-market commercial and life-heavy mixes stabilize renewal rates above 92% consistently.
For a new insurance brokerage, set 92% as a near-term operating target and build dashboards to track monthly retained premium and at-risk cohorts.
Measure renewal rate both by policy count and by premium to avoid a false sense of security if low-premium risks renew while higher-premium risks churn.
Tie producer compensation to premium-retained to align behavior with renewal protection.
How do renewal rates vary by product (auto, home, health, life)?
Renewal performance differs by line: auto is most price-sensitive; life is most stable.
| Line | Typical renewal rate | Why it trends this way (what to do as a broker) |
|---|---|---|
| Auto (personal) | ~76–85% | Frequent shopping and promotional pricing drive switching; run pre-renewal re-markets, bundle with home, and set expectations on rate cycles. |
| Homeowners | ~86% | Mortgage tie-ins and higher switching costs help retention; annual coverage reviews and claims prevention tips cement loyalty. |
| Health (individual & group) | ~80–88% | Employer groups renew steadily; individuals shop less often; provide renewal briefings on network/benefit changes and total cost of care. |
| Life (term & whole) | 90%+ (whole highest) | Long-duration contracts and embedded value reduce churn; schedule beneficiary/needs reviews to reinforce policy value. |
| Commercial P&C | ~86%+ (often higher) | Risk management support and market expertise retain accounts; present side-by-side carrier options and service calendars at T-90. |
| Specialty/Niche | Varies (80–95%) | Expertise trumps price in niches; publish playbooks and loss-control checklists to protect renewals. |
| Bundled Households | +4–8 pts vs. single-line | Cross-sell home/auto/life to raise switching costs and convenience. |
What share renew after their first policy term vs. long-term clients?
First-term renewals are meaningfully lower than mature-client renewals.
Expect ~65–75% renewal for first-term customers because many still price-shop and reassess coverage. Once clients renew at least once and carry multiple lines, renewal rises to 90%+ across most categories. Your goal is to convert first-year accounts into multi-line households within 6–12 months.
Build a “First-120-Day” playbook: welcome call, coverage check, policy document walkthrough, and a cross-sell conversation with clear next steps.
Track first-term renewal as its own KPI so it does not get hidden inside a strong overall average.
Run save campaigns at T-90 and T-60 targeting all first-term accounts with pre-quoted alternatives.
Do independent brokers and large brokerage firms see different renewal rates?
Both can perform strongly, but the drivers differ.
| Broker type | Typical renewal range | Operational levers that move retention |
|---|---|---|
| Independent brokers | ~87–93% | Personalized service + multi-carrier choice; emphasize quick re-markets, account rounding, and owner-led client reviews. |
| Large brokerage firms | Up to ~95% | Scale enables automation (touchpoints at T-90/T-60/T-30), data-driven risk reviews, and dedicated claims advocacy teams. |
| Hybrid models | ~90–94% | Local service with centralized placement/claims; standardize renewal cadences and share best-practice playbooks. |
| Digital-first MGAs | ~85–91% | Frictionless UX but vulnerable to price competition; add live advisory and richer coverage education to lift retention. |
| Specialty/niche firms | ~92–96% | Expert knowledge and scarce markets raise stickiness; publish annual benchmarking to defend pricing. |
| Producer-led books | Varies by producer | Retention correlates with proactive outreach; tie comp to retention and NPS. |
| Service-center models | ~88–93% | Consistent SLAs and multi-channel support raise trust; monitor transfer points to prevent drop-offs. |
You’ll find detailed market insights in our insurance broker business plan, updated every quarter.
When do customers usually decide to renew with a broker?
The working decision window is 60–120 days before expiry, with T-90 as the industry standard start.
Start with a renewal roadmap at T-90 (pricing context, coverage options), confirm appetite and re-market at T-60 if needed, and finalize at T-30. Late engagement compresses choices and raises churn.
Automate reminders and schedule proactive review calls so clients never feel surprised by premium changes.
Document every touchpoint in your AMS/CRM to ensure continuity if staff change.
Use templated agendas for T-90/T-60/T-30 calls to keep conversations focused and productive.
Why do customers choose not to renew with an insurance broker?
- Unexpected premium increases without early explanation or alternatives.
- Poor or slow customer service, especially around renewals.
- Negative or confusing claims experience with weak advocacy.
- Carrier appetite shifts or market exits that the client perceives as “no solution.”
- Personal changes (moving, asset sale, job change) that alter coverage needs.
How much do pricing changes and premium increases impact renewals?
Premium movement is the #1 trigger of shopping and non-renewal.
Price shocks without context lead to distrust; brokers who frame market conditions and provide side-by-side alternatives keep far more accounts. Re-marketing within your carrier panel at T-60 captures savings while preserving the relationship.
Always quantify the drivers (loss inflation, reinsurance, CAT trends) and explain what the client can control (deductibles, risk mitigation, bundling).
Log every premium discussion and send written summaries; this creates clarity and reduces last-minute objections.
Train producers to deliver pricing news empathetically and to present at least two credible options.
How strongly do service quality and claims handling influence renewals?
Service and claims support are decisive for retention, often offsetting moderate price rises.
Clients with positive claims experiences renew at materially higher rates; a single mishandled claim can jeopardize multi-line accounts. Establish a claims concierge process with check-ins at FNOL, during adjuster reviews, and at settlement.
Publish service standards (response times, renewal calendar, claims updates) and review them during onboarding so expectations are clear.
Survey clients post-claim and act on the feedback; track claim-related churn to spot training or carrier issues.
Create “moment of truth” playbooks for severe claims where leadership joins the call.
What proportion of renewals keep the broker but switch carriers?
Roughly one-fifth to one-third of renewals involve the client staying with the broker while changing carriers.
Expect ~20–30% of renewing accounts to move within your panel during firming markets or after claims. This is healthy: it proves your advisory value while defending your relationship and revenue.
Make carrier-switch workflows painless (one e-sign packet, pre-filled applications, clear coverage comparisons) so clients see you as the constant.
Track “retained but re-marketed” as a KPI and celebrate it—this is retention, not churn.
Capture reasons for movement (rate, terms, appetite) to inform next year’s placement strategy.
Do clients who hear from their broker regularly renew more than those who do not?
Yes—regular communication lifts renewal rates by 10–20 percentage points.
Quarterly touchpoints (email + phone) with micro-value—coverage tips, risk updates, or benefit changes—keep your brokerage top-of-mind. One annual renewal call is not enough.
Segment your book and set contact SLAs by risk and premium; automate nudges but keep live conversations for complex accounts.
Measure contact coverage: % of accounts with at least 3 touches since last renewal and the gap to 100%.
Use simple client portals or SMS updates to add convenience without sacrificing personalization.
Which incentives and retention strategies work best to increase broker renewals?
Retention is a process, not a one-off discount—focus on timing, transparency, and value.
- Start renewal work at T-90 with a clear calendar and options.
- Round accounts (multi-line bundles) and add value services like risk checks.
- Offer renewal rewards or loyalty perks where compliant and appropriate.
- Provide white-glove claims support with proactive status updates.
- Use omnichannel communication (email, phone, SMS, portal) with quick responses.
This is one of the strategies explained in our insurance broker business plan.
What is the current industry benchmark for customer retention and renewal rates?
The practical benchmark for an insurance brokerage today is ~84–86% for the broad market, with high performers achieving 93–96%.
Consumer personal lines (auto/home) often range 75–86% depending on pricing cycles and geography. Commercial lines typically sit higher (≈86%+) due to advisory value and switching complexity.
Use 92% as your base operating goal and track progress by line, producer, and cohort to find and fix pockets of leakage.
Publish monthly retention dashboards and review them in producer meetings to keep the metric central.
Benchmark both count-based and premium-based retention to avoid blind spots.
We cover this exact topic in the insurance broker business plan.
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How should a new broker structure the renewal timeline each year?
Use a standard T-90/T-60/T-30 cadence backed by templates and checklists.
| Milestone | Actions that protect retention | Outputs and tools |
|---|---|---|
| T-90 | Set expectations on pricing; confirm exposures; discuss goals. | Agenda email, update app data, coverage gaps list, optional re-marketing trigger. |
| T-75 | Collect documents and loss runs; validate valuations and schedules. | Document checklist, valuation worksheet, SOV update. |
| T-60 | Present options if rate hike expected; secure underwriting Q&As. | Side-by-side comparison deck, deductible scenarios, premium financing offers. |
| T-45 | Lock provisional selection; escalate outliers to senior markets. | Bindable quotes pipeline, exception log, approval workflow. |
| T-30 | Finalize coverage; confirm payment and ID cards/certificates. | Binding checklist, client confirmation, issuance tracker. |
| T-7 | Deliver policy docs; reiterate service standards and contacts. | Welcome packet, portal access, service calendar. |
| Post-renewal | Follow-up call; schedule mid-term review; collect NPS. | Call notes, tasks, survey link, cross-sell plan. |
Which KPIs should an insurance broker track to manage renewals?
Track a short, actionable KPI set that ties to behavior and outcomes.
- Retention by count and by premium (overall and by line/producer).
- First-term renewal rate and percentage of accounts with 3+ touchpoints.
- Percent re-marketed at renewal and “retained but moved carrier.”
- NPS/CSAT overall and post-claim; average response/quote turnaround time.
- Account rounding rate (average lines per household/account).
How should a broker communicate premium increases to reduce churn?
Be early, transparent, and option-oriented when rates rise.
Explain market drivers (loss inflation, reinsurance, catastrophes) and quantify the client’s options (deductibles, credits, carrier switch). Provide a simple comparison table and your recommendation with pros/cons.
Follow with a written recap and a call within 48 hours to handle questions; the combination of clarity and responsiveness keeps trust high.
If the increase is steep, pre-shop at least two markets so you can present real alternatives, not theory.
Close with next steps and a deadline to avoid last-minute stress.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
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Sources
- Houlihan Lokey — Insurance Brokerage Market Update (Q2 2024)
- Agency Performance Partners — Insurance Policy Retention
- First Page Sage — Customer Retention Rates by Industry
- Association of British Insurers — Home & Motor Pricing Changes
- Embroker — Power Moves to Optimize Renewals
- Insurance Thought Leadership — Client Retention Strategies
- Propel — Customer Retention Rates by Industry
- Marsh — Global Insurance Market Index
- Marsh — U.S. Insurance Rates (Quarterly)
- McKinsey — Global Insurance Report 2025