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Share Succession planning for insurance agencies: A complete guide March 31, 2026 Strong leadership drives the success of any agency, with a focus on serving customers and driving revenue today, while also building the value of the organization for tomorrow. Agency owners navigate top business concerns, which, according to recent Nationwide research includes inflation, high interest rates, increased competition and evolving regulations.1 One challenge many insurance agencies overlook is perhaps one of the most important elements of fostering long-term success, business succession planning. Nationwide’s recent research found that roughly 30% of distribution partners are now expecting to retire later than they did just one year ago, and 33% feel unprepared.1 Given these top business concerns, shifting timelines and changing plans, prioritizing succession planning is especially important. What is succession planning? Succession planning identifies and develops potential successors for key positions in an agency. It outlines how and when leadership responsibilities will be transferred with the goal to ensure that an agency can continue its mission and meet company objective in the future—even after current leadership has moved on. According to best practices, a succession plan should include: Chosen successors Succession training plans Management roles and responsibilities during the transition Share purchasing and selling logistics Ownership distribution decisions Financial, tax, and legal considerations Retirement arrangements Contingency plans Communication processes A general succession timetable Above all, succession plans are designed to help account for all the “what if?” scenarios that can arise when ownership or leadership changes. In most cases, it’s best to involve the outside assistance of local legal counsel when developing such a plan. Why is succession planning important for insurance agencies? Having a succession plan is important for several reasons. To start, this plan can help insurance agencies prepare for the unexpected. An emergency that leaves a senior leader unable to perform their duties could happen at any time. An effective succession plan can give the agency the resources they need to respond and operate during that time. Planning can also help ensure an agency is prepared for outcomes such as mergers and acquisitions, which have become more common in today’s insurance marketplace. Beyond emergencies, senior leaders will eventually need to retire. Our Nationwide research found that 64 is the average age that agents plan to retire.1 For family-owned agencies especially, having this type of plan in place can also keep the business within the family. This is particularly important considering the majority of family-owned businesses hope to keep control within the family, but only around two-thirds have documented and communicated a plan. For both family-owned and non-family-owned businesses, succession planning can help protect the legacy of an agency and its leadership. An effective plan can help ensure that future generations are set up to operate the agency successfully and add value to the communities they serve. The workforce age gap challenge Succession planning also informs hiring strategies. Agencies that hire correctly now position themselves better for future transitions. Studies show the average age of an insurance agent in the United States is almost 60 years old.2 To account for this aging workforce, you must bring in new talent. However, many new hires don’t last long in the insurance industry, creating challenges for finding the right employees to develop into next-generation agency owners. Our survey found attracting (38%) and retaining (44%) skilled employees as the top workforce issues in 2025. One way to tackle the workforce age gap in the insurance industry is by creating initiatives that attract and retain younger talent. Start by emphasizing the potential for career growth, financial stability, and professional development within the insurance field. Develop internship and mentorship programs targeted at recent graduates or individuals exploring new career paths. These programs can provide hands-on experience, demystify the industry, and help younger professionals build confidence while learning from seasoned agents. Additionally, consider highlighting the technological advancements shaping the industry. Many younger professionals are drawn to fields with innovative tools and platforms. By showcasing how technology aids in client management, streamlines quoting processes, and enhances marketing reach, you can demonstrate how the modern insurance landscape aligns with their skills and interests. Ultimately, bridging the age gap requires fostering an engaging environment where new talent can envision a long-term, rewarding future in the insurance industry. This proactive approach ensures your agency remains dynamic and prepared for future. Seven steps to effective succession planning It’s never too early to start succession planning. While some experts suggest creating a plan five years before a senior leader’s retirement or exit date, succession planning steps can begin the moment an agency opens its doors. Creating this plan well in advance can help uphold business goals, maintain financial stability, and minimize disruptions during transition periods. What it takes for a successful plan may vary by agency, but here are seven key steps: Step One: Assess the current situation: To properly assess all the necessary aspects required for succession planning, an agency needs to have a firm grasp on the current state of business and operations. This will help to not only get a fair price for the business if a buyout or sale occurs, but will also assist in determining what steps the agency needs to take to be in a good position before a senior leader’s desired exit date. Step Two: Assemble an advisory team: A team of key partners can help ensure that an agency’s leadership makes the right decisions and develops sound succession planning strategies. Ideally, some of the team members will have experience aiding other businesses in developing succession plans. Examples that could help bolster an advisory team include accountants, lawyers, business leadership, business valuators, and—if applicable—family.3 During this process, carriers such as Nationwide can also be beneficial partners by providing resources, experience, and expertise to help guide an agency. Step Three: Develop a written succession plan: It’s important to document and formalize the succession plan once details are clarified. Typically, these plans can require 1-3 years of development prior to successor preparation and the change in leadership.4 It should be comprehensive and address all details and contingencies. Step Four: Create an exit strategy: Understanding exit options and selecting the one that best fits the situation is a critical component of succession planning. Consulting with an advisory team during this point of planning can make this process easier. Step Five: Prepare the successor: Ideally, the successor also has adequate time to learn what has made the agency successful and how to effectively continue operations into the future. Current leadership should prioritize passing on their experience and unique operational knowledge about running their agency. When confident that the right choice has been made for a successor and they have been properly trained, it’s time to make it official. Step Six: Communicate the change: This process includes clearly informing the business and its employees of the decision of current leadership or ownership stepping down. Communicating the change as early as possible can help the agency prepare effectively. While outgoing leadership can focus on highlighting any changes, it’s also worthwhile to inform employees of what is not changing. Likewise, it’s important to effectively communicate the change to clients and policyholders to keep them informed and reassured of continued strength.5 Step Seven: Begin the ownership transition: Finally, it will be time to begin the transition. A plan should be in place by this time, and the agency should be ready to execute the plan. Planning today for tomorrow’s success Changing agency leadership or ownership can be challenging. Fortunately, succession plans can help make this process easier. By taking proactive steps, insurance agencies can easily navigate these periods of change and promote business vitality as they begin a new chapter. Citations/Disclaimer: 1 Nationwide, Economic Pressures Survey Report – Business Owners & Agent Insights, Dec. 2025 2 Independent Insurance Agents & Brokers of America (Big “I”), 2022 Agency Universe Study 3 Daya, S. (2025, June 3). Business succession planning: Building an effective team. J.P. Morgan Wealth Management. 4 Kenton, W. (2025, June 6). Why succession planning matters. Investopedia. 5 Paychex. (2023, February 22). What is the employee succession planning process? Share
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