'A churn risk beneath the surface': Most buyers satisfied with brokers but margin for error narrows

Prompt, effective service remains the top characteristic clients want

By Erin Ayers, Front Page News

Most commercial insurance buyers (85%) remain satisfied with their brokers, but at least a third (33%) only take stock of the relationship when something goes wrong and as the risk landscape deepens, there’s little room for errors or omissions, according to Zywave’s annual Broker Services Survey.

“High satisfaction scores can obscure real vulnerability and a churn risk beneath the surface. A book of business that looks secure on paper may be quietly at risk,” the authors of the report said, adding, “Long-term retention often hinges on avoiding missteps. What might once have been overlooked, such as a missed email or a delayed renewal quote, is now magnified in a marketplace defined by rate volatility and shifting regulations.”

Just over a quarter (26%) of respondents examine their broker relationships on an annual basis, while another 15% evaluate every two to three years. About 16% rarely evaluate the relationship at all.

Prompt, effective service holds the top spot on the list of criteria buyers value most for the fourth year running. Being a trusted advisor rather than a salesperson ranks second, followed by the ability to negotiate renewals.

In terms of the reasons clients switch brokers, slow response times and ineffective services top the list. Other survey respondents say they’d jump ship if a broker could not effectively act as a “strategic” advisor or didn’t fully understand their industry or needs.

“Slow service is often perceived as disengagement, and brokers who show up only at renewal time may find they’re competing with brokers who’ve been providing more frequent or timely communication,” said the authors of the report. “Especially in today’s market, clients don’t just want answers, but reassurance that they are partnering with the right broker.”

The survey revealed potential gaps for brokers to tackle, including the fact that while 98% of buyers want their broker to have a thorough understanding of their industry/business needs, only 80% feel their brokers measure up in this regard. Similarly, 96% of respondents want brokers to help them develop or refine their risk management strategy but just 58% feel their brokers actually follow through on this service.

The survey also revealed some concerns on communications for brokers. Three-quarters of respondents want to hear from their brokers at least monthly, with 39% preferring monthly communications. However, just 29% say they hear from their broker on a monthly basis and 15% receive communications only semiannually.

“Brokers who check in only twice a year are significantly out of step with client expectations and may find themselves vulnerable at renewal time, even with clients who appear self-sufficient,” warned the authors of the report, adding, “Strategic planning and proactive communication are no longer optional. When the margin for error narrows, even small missteps can trigger outsized consequences.”

And while over 35% hear from their brokers on a weekly basis, this year’s survey revealed that monthly or more frequent communications are becoming less common.

“This decline is driven in part by the rise of client self-service tools, which risk moving that cohort away from viewing their broker as a trusted advisor, especially during the summer when engagement naturally dips and Q4 renewals are on the horizon,” the report authors noted.

In terms of the type of communications, 99% of respondents highlighted outreach with market intelligence ahead of renewals as a must for brokers. However, just 74% of buyers say they actually receive this service.

In terms of renewals, nearly all (95%) of respondents want to begin renewal discussions at least three months out. Of those, 42% hope for six months in advance. Just under 5% of respondents think kicking off conversations 30 days out is preferable.

“Proactive outreach allows brokers to present benchmarking data, conduct gap analyses, explore carrier options and align coverage with upcoming business changes. None of this is possible when a broker first reaches out 30 days before renewal,” per the report.

Plenty of prep time for renewals has become essential, with a commercial insurance market that “is not moving uniformly.” While several lines of business have featured buyer-friendly conditions, several liability lines remain tight.

Seventy percent of respondents named managing rising insurance premiums year-over-year as their top commercial insurance challenge for the 2026 survey, followed by understanding the appropriate level of coverage needed. Aligning insurance coverage with organizational risk tolerance placed third in buyers’ list of challenges.

“Risk tolerance is not static, and many businesses struggle to revisit it as often as the topic warrants. Operational changes, leadership transitions, new contractual obligations, and shifts in revenue or headcount can all alter an organization’s exposure profile in ways that are not always visible at renewal,” said the Zywave team in the report.

Managing Editor Erin Ayers can be reached at [email protected]