The insurance brokerage industry is experiencing a significant shift. After years of strong organic growth fueled by rate increases and premium inflation, brokers now face a different market environment: premiums are declining across most lines, commission revenue growth is moderating, and the drivers of automatic growth have changed. For the first time since 2017, commercial property rates have turned negative, and the soft market conditions that many predicted are now here.

This shift affects brokers of all sizes. According to recent market data, median organic growth among brokers has declined from over 11% in 2023 to approximately 7.8% in mid‑2025, with expectations of continued moderation as soft market conditions persist.

The important question every broker must answer: How do you maintain sustainable growth when market conditions shift from tailwind to neutral—or even headwind?

Understanding the Current Market Dynamics

The current market represents a transition from the exceptional conditions brokers enjoyed during the hard market cycle to a more normalized competitive environment:

Rate Compression Across Most Lines

Nearly every commercial insurance line except excess casualty has entered soft market territory. Property rates, which had been a reliable growth driver, declined for the first time in eight years. Cyber insurance premiums have dropped significantly in many markets. Even D&O coverage is seeing competitive pressure drive rates down as capacity increases.

The True Nature of Recent Growth

During the hard market cycle from 2020–2024, many brokers experienced impressive organic growth rates — but a significant portion of that growth came from premium inflation and rate increases within existing client portfolios rather than true new business acquisition or expansion.

As one industry expert noted, the distinction between genuine new business development and market‑driven revenue inflation has become clearer now that rates are stabilizing or declining.

A Return to Fundamentals

This market shift is creating renewed focus on core brokerage capabilities: client acquisition, retention based on actual value versus scarcity, cross‑selling, account penetration, and true organic business development.

Why This Shift Happened: Market Cycles Are Natural

For nearly four years, insurance brokers benefited from strong premium increases — often 8–10% annually — combined with inflation‑driven exposure growth. This meant that revenue grew even when new business development efforts remained flat.

But this environment created blind spots:

• Under‑investment in sales capacity
• Technology used for efficiency, not revenue growth
• Weaker differentiation masked by rising premiums
• Client retention supported partly by market scarcity

The soft market is now revealing which firms built sustainable growth capabilities versus those lifted primarily by favorable conditions.

What This Means for Your Brokerage

Revenue Strategy Evolution

Brokers who relied on rate‑driven revenue growth must now lean into client acquisition and expansion. Without automatic rate‑based growth, business development must become intentional and measurable.

Competitive Differentiation

As carriers aggressively compete and clients have more options, brokers must differentiate through service, specialization, expertise, and measurable value — not simply access to the market.

The Quality Premium

High‑quality firms with strong organic growth, specialization, and clear differentiation continue to command premium valuations in M&A markets, while generalized firms see flatter valuations.

Talent Investment

Producer talent becomes even more critical in a soft market. The ability to hire, train, and retain strong producers creates compounding long‑term advantages.

Building Resilience: Five Strategic Imperatives

1. Redefine What “Organic Growth” Really Means

Top‑performing brokers set clear metrics around:

• New client acquisition
• Cross‑sell and penetration
• Retention independent of rate effects
• Revenue diversification

The best firms achieve nearly double the industry’s average organic growth — 18.2% compared to 8.7% — because they build structured, intentional growth systems.

2. Invest Strategically in Sales Capacity

Industry data consistently shows that most brokers under‑hire producers relative to their growth targets. Brokers must calculate required producer capacity based on growth goals and reverse‑engineer a hiring and support plan.

Beyond headcount, investment in:

• CRM systems
• Data analytics tools
• Marketing and brand support
• Client‑service infrastructure

…creates the environment producers need to succeed.

3. Leverage Technology as a Growth Engine

Forward‑thinking brokers are using technology not just for efficiency, but for revenue generation:

• Analytics to identify cross‑sell opportunities
• Digital experiences that improve client satisfaction
• Market intelligence for prospecting and trend insight
• Automation tools that accelerate client solutions

Technology becomes a competitive advantage when used to enhance client relationships and uncover revenue opportunities.

4. Specialize and Differentiate

As competition increases, generalist brokers struggle to stand out. Specialization allows brokers to deliver deeper expertise and unique value.

Specialized brokers offer:

• Industry‑specific insights
• Access to niche markets
• Stronger thought leadership
• Hard‑to‑replicate solutions

Many pair this with MGA or affinity strategies for even greater differentiation.

5. Build Proactive Client Relationships That Transcend Price

Soft markets often lead clients to shop around — this is normal. The winning strategy is to deliver value beyond the premium.

This means shifting from transactional renewals to year‑round advisory relationships:

• Quarterly or semi‑annual reviews
• Risk management consulting
• Tailored education and insights
• Consistent communication outside renewal periods

When clients see you as a strategic partner, loyalty increases even when lower premiums are available elsewhere.

The Path Forward: Sustainable Growth Across All Market Cycles

The soft market is not a setback — it’s a catalyst for building a more resilient, competitive brokerage model. The firms that come out stronger will be those who invest now in talent, technology, specialization, and proactive client relationships.

This requires asking challenging questions:

• Do your growth metrics reflect true business development?
• Do you have the sales capacity to meet your goals?
• Is your value proposition clearly differentiated?
• Are you building capabilities that work in any market cycle?

The brokers who use this moment to evolve will thrive not just during soft or hard markets — but consistently. Market cycles are inevitable. But sustainable, differentiated value is a choice.

The brokers who invest now in building durable, value‑driven capabilities will define the next era of industry leadership.