Insurance rates have climbed to a new level, creating real pressure on client retention. While agencies can’t control market-wide pricing, they can control how they communicate and manage renewals.
The agencies keeping the most clients aren’t waiting for people to call upset. They get ahead of the conversation, educate clients early and stay in touch throughout the renewal process. This proactive approach helps protect revenue, even in a tough market.
Why clients are reacting strongly
After nearly two decades of relative stability, rates shifted sharply beginning in 2021 and have not returned to historical norms. Clients are not reacting to a single increase, they're reacting to multiple consecutive years of rising premiums. That compounding effect drives frustration.
Average annual premium increases by year
| Line of Business | Historical Avg | 2022 | 2023 | 2024 | 2025 | 2026 (Est.) |
|---|---|---|---|---|---|---|
| Homeowners | 3.5% | 5.4% | 11.0% | 11.4% | 8.5% | 7.2% |
| Personal Auto | 3.8% | 5.8% | 12.0% | 16.5% | 7.0% | 4.5% |
| Commercial Property | 4.2% | 12.5% | 18.3% | 7.9% | 2.5% | 2.0% |
| Commercial Casualty | 4.5% | 8.0% | 8.8% | 5.4% | 4.2% | 12.0% |
Chart data: S&P Global Market Intelligence, The Council of Insurance Agents & Brokers (CIAB), and ValuePenguin (LendingTree)
Even a moderate increase today can trigger shopping behavior because clients are comparing their current premium to what they paid several years ago, not just last year. A policy that cost $1,200 in 2022 may now cost $1,800.
Step 1: Send broad market education to your entire book
Before renewals arrive, send a professionally printed letter to your personal and commercial lines clients explaining broader market conditions. Distribute it as a general market update to your entire book, rather than timing it around individual renewals.
When clients are educated in advance, renewal conversations tend to be calmer and more productive. Physical mail carries weight in a way digital communication often does not. Unlike email, a printed letter signals that you are investing time and intention into the relationship and approaching your advisory role thoughtfully.
The goal of the letter is to:
- Acknowledge current market conditions
- Explain the primary drivers behind pricing
- Prepare clients for potential renewal adjustments
- Reinforce that you're actively reviewing coverage and pricing on their behalf
Templates you can use
These templates are designed to be clear, direct and easy to read in a printed format. You can customize them with regional or carrier-specific context as needed. Their purpose is to educate, set expectations and reinforce your advisory role before renewal conversations begin.
Personal lines template
As your insurance advisor, I want to keep you informed about broader market conditions that may impact your upcoming renewal.
Across the country, insurance carriers continue adjusting rates due to several ongoing factors:
Rising rebuild and repair costs
Construction materials, auto parts and skilled labor remain significantly more expensive than just a few years ago. Higher claim costs have led carriers to adjust pricing accordingly.
Legal and settlement trends
Larger legal settlements and rising litigation expenses continue to influence liability pricing across the market.
Severe weather events
Increased frequency and severity of weather events have resulted in sustained industry losses. Because insurance operates as a shared risk system, widespread events affect overall pricing.
What this means for you
You may see an adjustment at renewal as these conditions continue to work through the system. While the pace of increases has slowed in some areas, premiums remain elevated compared to historical norms.
In light of these ongoing changes, our team remains focused on reviewing your coverage and pricing to help ensure you have the right protection at a competitive cost.
When your renewal approaches, our team will actively:
• Review your coverage to ensure it reflects your current needs
• Confirm all eligible discounts are applied
• Research available carrier options to secure the best coverage and cost for you
No action is required at this time. This update reflects our commitment to keeping you informed and guiding you proactively through market changes. If you have any questions or updates that may affect your coverage, contact us and we’ll be glad to review them with you.
Sincerely,
[Agent Name]
[Agency Name]
Commercial lines template
As your insurance advisor, we want to provide a brief update on trends influencing the commercial insurance market.
While pricing has begun stabilizing in certain areas, several factors continue to impact underwriting and premiums:
Property and construction costs
Higher material and labor costs have significantly increased the cost to repair or rebuild commercial property. Carriers have adjusted pricing and replacement value requirements accordingly.
Legal and liability pressures
Rising litigation costs and larger settlements continue to affect liability and umbrella pricing across industries.
Cyber and AI-driven risk
Advancements in AI have accelerated sophisticated phishing, ransomware and impersonation attacks. Carriers are placing increased emphasis on documented cyber controls such as Multi-Factor Authentication, endpoint protection and employee training. Strong internal controls can positively influence underwriting outcomes.
Catastrophic weather events
Large-scale weather losses have created sustained pressure in the global reinsurance market, influencing pricing trends beyond directly impacted regions.
In light of these ongoing changes, our team continually monitors these trends and works to keep your coverage aligned with market conditions and your business needs as they evolve.
When your renewal approaches, our team will actively: • Review your coverage to make sure it reflects your current operations and risks • Confirm available credits and policy features are structured properly • Look at carrier options and pricing to help secure strong coverage at a competitive cost
No action is required at this time. We will connect as your renewal approaches to review strategy and recommendations. If you’d like to review your coverage sooner or have any questions, reach out to our office and we’ll be glad to help.
Sincerely,
[Agent Name]
[Agency Name]
Step 2: Create renewal thresholds and assign call lists
Broad education plays an important role in setting expectations and reducing surprise across your entire book. It helps clients understand the broader environment before renewal documents arrive and prevents immediate frustration.
However, for certain groups of clients, education alone may not be enough. Additional, proactive communication is often necessary for accounts that carry greater value or greater renewal risk. That is where structured call outreach works in conjunction with your broad education strategy.
Define clear criteria that automatically trigger call tasks for your agents, ensuring higher-risk or high-value accounts receive personal outreach before renewal conversations begin.
Examples include:
- Renewal increases above a defined percentage
- Accounts with consecutive yearly increases
- High-value accounts
- Clients with prior price sensitivity
These conversations allow you to control the narrative early, reinforce that options were reviewed and provide reassurance that the account is being actively managed. The call does not need to be long, it simply needs to be intentional and timely.
Putting the strategy into a system
For this approach to consistently improve retention, it must operate as a system rather than a one-time effort. ClientCircle can help you help you streamline this process.
You can automate the printing and mailing of professional letters to your entire book without adding manual workload. With smart segmentation, you can build dynamic groups based on renewal timing, percentage increases, account value or any custom criteria. And when accounts meet your defined thresholds, ClientCircle can generate structured call tasks so your team knows exactly who to contact and when.
The result is a coordinated retention process around renewals:
- Broad education to reduce surprise
- Structured outreach to protect key accounts
- Clear visibility into follow-up and accountability