Retention Drives Revenue: A Smarter Path to Sustainable Agency Growth

At Summit, we understand how important retention is to your agency. That’s why we’ve built our business on helping agents win accounts—and keep them—with consistent support and smart solutions. The numbers speak for themselves:

Retention is a strategic advantage. When Summit renews your client’s policy, you can spend less on acquisition, operate more efficiently, and build deeper client relationships.

“Acquiring a new customer costs 5 to 25 times more than retaining an existing one, according to Harvard Business Review.¹

PIA National² says the average agency retention rate is 84%, which means agents must generate 16% in new business just to break even.

As a result, agencies with higher retention rates are more profitable with less effort, simply by focusing on the clients they already have.

Greg Talbot, chief actuary at Summit, leads the team responsible for analyzing retention trends, policy longevity, and the financial impact of renewals. His insights help shape Summit’s strategy for supporting agents and maintaining a stable book of business.

“Internally, it’s much cheaper to keep a renewing account than to onboard a new one,” Greg explains. “And for agents, fewer cancellations mean less work and more stability.”

Adam Sipe, senior sales manager, works directly with agents to understand how to make retention easier and more profitable. He emphasizes the importance of consistent quoting and agent support.

“Retention is where most agencies make their residual income,” says Adam. “New business is flashier, but successful agencies grow with the steady income of renewals.”

Strong retention is the result of thoughtful design, and Summit’s approach to underwriting is key.

Unlike some carriers, Summit does not segment underwriting teams by account size. Whether it’s a small business or a large operation, agents work with the same experienced underwriter every time. That consistency builds trust and speeds up decision-making.

Summit also offers a flexible portfolio of carriers, policy products, and payment plans. This gives agents the tools to match the right solution to each client, even as needs evolve.

Even when terms change, Summit prioritizes quoting renewals. “Any quote is better than no quote,” says Adam. “If we offer a renewal, even at a higher price, agents have something to work with. A nonrenewal can be difficult to explain and expensive for both the agent and insured to overcome. Summit’s ability to offer renewal quotes on nearly all policies allows agents to connect with us and develop a product that fits the needs of their clients.”

Last year, Summit quoted 98.4% of renewal policies, and only 1.5% of premium was nonrenewed. This means agents had a viable path forward nearly every time.

Renewals make it easier to build long-term client relationships and grow a stable book of business. For agents, that translates to less time chasing replacement business and more time strengthening the agency’s financial foundation.

“Retention isn’t just about keeping business,” says Talbot. “It’s about making your business stronger, more stable, and more profitable over time.”

At Summit, we don’t just help you win accounts. We help you keep them.