The agents that report increased client retention are also more likely to have a positive opinion of using AI, according to Liberty Mutual's 2026
More than half of agents that report increased retention, 52%, view AI as an opportunity rather than a threat. Agencies with improved retention are also more likely to be saving time with technology, with 51% saying they have saved a notable amount of time by using AI tools. This correlation does not prove that AI increases retention in and of itself.
This data suggests that agencies are using AI to create capacity for their staff to focus on personal engagement with consumers. The study shows agents are also talking about cybersecurity, smart home devices and severe weather.
Ninety-eight percent of agents said rate retention is very important to success. The results show an average retention rate in agencies hovering around 84%. The majority of agencies report flat or declining retention compared to a year ago, while 18% reported increases of 5% or more.
"One of the clearest findings from our research is that retention doesn't happen by accident. Independent agencies with structured retention processes tend to outperform their peers, and AI is increasingly helping agencies scale those efforts more efficiently," Dale Steinke, director of the Agent for the Future Advisors at Liberty Mutual, told Digital Insurance. "One of the most valuable applications is automating annual reviews. There is a subset of AI policy-checking tools that can quickly analyze policy documents to identify coverage changes, potential gaps and cross-sell or upsell opportunities that can make the relationship stickier."
Fifty-five percent of agents said real-time updates on claims, renewals and policy changes are more important to consumers than they were five years ago. Fifty-one percent said transparency in policy terms and pricing has become more important, 47% said consumers expect more access to self-service options.
The study surveyed about 1,200 U.S.-based independent agency principals and staff to explore consumer expectations, building trust and what can improve retention.
Agents who responded to the survey said they built trust with consumers by communicating clear explanations of insurance and policy options, as well as being fast and consistent with follow-ups.
"AI is helping agencies spend less time sorting through information and performing routine analysis, and more time acting on insights and advising clients," Steinke said. "While technology can surface insights and streamline workflows, retention is still built through trusted relationships, sound judgement, personalized advice — areas where agents remain irreplaceable."
