How do you sell software to insurance agencies and brokerages?

How do you sell software to an insurance agency?

Sell to the agency owner, with the person who runs operations in the room. Show that your product connects to the agency management system the agency already runs. And start the conversation from a dated change at the agency, such as an acquisition, a new operations owner or new service staff, instead of from a list of agency names.

An independent agency is a small, owner-run business where one system holds clients, policies, carriers, commissions and service history. Every tool gets judged on whether it works with that system and whether the people who live in it believe it will make their week easier.

This guide is for companies that sell software, AI or services to independent agencies and brokerages. It is part of Clean for insurance. If you sell to carriers or MGAs instead, the buying works very differently: see how to sell software to insurance carriers and how MGAs and program administrators buy software.

How many independent insurance agencies are there in the US?

About 37,000, according to the Big "I" 2026 Agency Universe Study (a survey with 1,376 respondents, released September 23, 2026). The Big "I" calls that a small decrease from 2024 and says the count has stayed relatively stable over the last decade. Insurance Journal put 2024 at 39,000.

Agencies in the 2026 study report 9.9 staff on average across all positions, up from 8.2 in 2024. They also work with more carriers: IA Magazine's write-up of the same study (October 1, 2026) puts average carrier appointments across all lines at 19.7 in 2025, up from 17.2 in 2024.

The channel carries far more of the market than its agencies' size suggests. The Big "I" 2026 Market Share Report (June 23, 2026, built on 2025 data) says the independent agency channel places 62% of all property and casualty insurance written in the US, and that independent agencies wrote 87.7% of commercial lines written premiums. If your product touches commercial lines service, independent agencies write most of that premium.

Who signs at an agency, and who shapes the decision?

The owner or principal signs. A selection workbook from the IIANC Agency Management & Technology Committee quotes an independent agent calling the management system "one of the most important decisions that an agency owner will make."

But the owner rarely decides alone. The Big "I" Agents Council for Technology (ACT), in its guide to agency tech decisions (November 4, 2022), tells agencies to "Offer to give key employees a seat at the table during all stages of your assessment." Those key employees are the operations manager, the account managers and the customer service representatives who run the system all day.

Sometimes there is a third party too. ACT tells agencies in a network or affiliation to ask whether it offers scaled pricing, so expect questions about a group price.

In practice, the buying committee at an agency buying operations software has three core seats: an executive sponsor, a service owner and someone who evaluates systems. Map the function, not the title. One exception: once an agency is bought by a larger platform, the decision often moves to the acquirer's integration and operations teams. That is its own sales motion, covered in insurance agency acquisitions.

How do insurance agencies buy software, and what do they check?

The agency management system is the anchor purchase, and ACT's guide gives agencies a checklist for choosing any new technology vendor. Read it as the questions you will get, and have answers ready before the first demo. ACT also points agencies to other agencies with experience of the same tool, so expect reference calls.

Three things follow for a seller. First, integration is the product: anything that does not connect to the management system means double entry for a team that already has too many systems. Name the integrations already running in production, not the roadmap. Second, write down your exit terms before anyone asks. Third, bring implementation examples with real dates, because ACT tells agencies to ask for actual examples.

The checklist, paraphrased from ACT's guide, tells agencies to:

• Review the contract's exit terms: how much notice is needed, what leaving costs, and how the agency gets its data out.
• Ask about the "Data conversion cost/process from current system."
• Check the cybersecurity and breach reporting terms: how a breach is defined, how fast the agency hears about it, and who gets told.
• Underwrite the vendor as a business: time in business, financial health, testimonials, and how many implementations went well or badly.
• Require a list of integrations that already work, such as the agency's CRM and raters.
• "Make certain they support ACORD standards."
• Understand all costs: what is included, what is extra, and how pricing scales as the agency grows.
• Understand the implementation timeline: when the vendor can start, when it expects to finish, and real examples.

What are agencies trying to fix?

Carrier connections, first. The Big "I" 2026 Agency Universe Study says the biggest technology challenge for agencies was, "as in previous years, dealing with multiple carrier interfaces."

Second, systems that do not talk to each other. In ACT's 2026 Tech Trends Report (an email survey of member agencies, released February 19, 2026), 16% named too many disconnected systems as their top tech-related challenge, the same share that named lack of automation and process. Keeping up with the pace of technology change came first, at 22%.

Third, re-keying. In an insurance software company's online survey of 702 independent agents (April to May 2026, released August 26, 2026), 74% named re-keying risk data into multiple carrier portals as their top pain point, and 90% said they had reduced business with a carrier because of friction around submissions. It is one vendor's survey, so treat it as a pointer, not a census.

AI is the fourth thread, and two different surveys measure it. The Big "I" Agency Universe Study says 46% of agencies report using AI, up from 15% in 2024, with security and privacy (48%) the second biggest barrier after lack of knowledge about what AI can do (60%). ACT's Tech Trends survey found 31% of agencies not using AI, 33% just experimenting and 8% with AI embedded in daily workflows, and 55% without a written AI use policy. These are different surveys with different questions and samples, so do not merge them or read them as contradicting each other.

For a seller the pattern is plain: pitch against a pain the team already names (carrier interfaces, double entry, retyping), and if you sell AI, expect security questions.

Do agencies have to vet their software vendors?

Where a state adopted the NAIC model, a licensed agency can have its own duty to vet vendors. The NAIC Insurance Data Security Model Law (#668) applies to insurers, agents and other licensees. Its Section 4F says a licensee "shall exercise due diligence in selecting its Third-Party Service Provider" and must require that provider to put appropriate administrative, technical and physical measures in place to protect the systems and nonpublic information it holds or can reach.

Two limits matter. First, it is a model law, so it applies only where a state adopted it, and state versions differ. The NAIC's government affairs brief (status as of August 8, 2025) says 28 jurisdictions had implemented it. Second, the model exempts licensees with fewer than 10 employees, including independent contractors, from Section 4, which is where the vendor oversight duty sits. Agencies in the 2026 Big "I" study average 9.9 staff, so whether a given agency carries the duty depends on its own headcount and its state's version of the law.

Expect a larger agency to ask for your security practices in writing. This is context, not legal or compliance advice; check the state's own text and talk to your counsel. Carriers that buy AI have a separate NAIC bulletin to consider, covered in the NAIC AI model bulletin guide.

Which changes give an agency a real reason to buy?

A list of 37,000 agencies is not a pipeline. What makes one agency worth a conversation is a dated change that touches how its service work runs. Each moment below comes with what it does not prove: a change is a reason to ask, not evidence of a vendor search.

Example (invented): a 14-person commercial lines agency announces in August that it bought a smaller agency's book across town. That is a fair reason to ask the operations manager how the new accounts are being serviced and when they move into the agency's system. It does not prove the team is behind or that anyone is shopping.

No verified source gives a rate for agencies switching management systems. Insurance agency acquisitions covers what happens to an acquired agency's systems.

How Clean finds agencies with a real reason to buy

For companies that sell software to agencies, brokerages, MGAs and carriers, Clean finds firms with a dated change, such as an acquisition or a new operations leader, and names the people who run the work. Every reason comes with the evidence behind it, so your team can check it. What Clean cannot confirm stays marked unknown.

Clean is clear about what a change does not prove: an acquisition is a reason to ask how the new book is being serviced, not proof of a backlog or a vendor search. You tell Clean who to look for by industry, size, region and what you sell, and who to leave out, such as current customers. Clean also shows who in your network can introduce you, and you can read more on how Clean treats buyer signals.

Clean is not a list vendor, a contact database, intent data or an AI SDR, and it does not send messages for you. Book a demo to see agencies in your market with a real reason to buy, the evidence, and who to reach.