We don’t run an agency at RiskBox, but we do insure a wide range of them. That gives us a distinct perspective shaped by what we see day in, day out across the market. And right now, it’s hard to ignore the tough conditions at play.
Whilst we’ve seen a handful of agencies thrive – often those who are highly specialised, well-positioned, or simply a bit fortunate – the broader picture looks significantly more challenging. In many ways, it even feels tougher than the COVID period. Here’s why…
COVID was sudden, dramatic, and disruptive, but there was also clarity. Support schemes existed, and whilst clients paused, many came back quickly. There was a shared sense of “we’re all in this together.”
What we’re seeing now is different. It’s slower, more uncertain, and in some ways more draining, with a lot of the debt accrued during that time failing to dissipate.
As well as micro-agencies and newer businesses, we’ve seen a particularly large number of well-established, high-profile agencies go into administration. Even those with long track records, strong reputations, and in some cases, solid retainer income.
The reasons aren’t always dramatic. Often, it’s a combination of smaller pressures that build over time. Think cashflow challenges, late-paying clients, reduced client budgets, difficulty replacing lost clients quickly enough – all common occurrences in isolation, but potentially fatal together.
Agencies are being forced to take corrective action just to survive. That often means downsizing, with difficult decisions made about people, culture, and future direction. These are never easy calls, and they can carry additional risks too, particularly if employees feel aggrieved or unsupported through the process.
In other cases, we’re seeing agency owners choosing to sell earlier than planned. Sometimes it’s about securing stability in an uncertain economic environment. It can also be driven by concerns around AI and what it means for the future of their offering. But often, it’s simply down to exhaustion.
Sure, running an agency has always been demanding. But when that demand is amplified, even the most shrewd businesses can let their guard down. So it’s no surprise that we’ve also seen a number of agencies fall victim to increasingly sophisticated scams. Bad actors are quick to expose vulnerabilities, and unfortunately, businesses under pressure tend to reveal them more easily.
Many agencies are being impacted not because they’ve done something wrong, but because their clients are struggling, often causing a punishing domino effect.
This tends to be the common thread. Whether it’s cashflow issues, rising costs, market downturns, or general economic uncertainty, it’s all feeding through. And then there’s the issue of client misalignment.
Those clients that were never quite right to begin with – perhaps with thin margins, unclear scopes, or challenging behaviours – become far more problematic in tougher times. When late payments become standard, agreed fees get pushed back on and disputes become more frequent. This brings an increased emotional toll upon teams.
Toxic, demanding client relationships are becoming more common, sometimes turning disrespectful and ultimately damaging to both morale and profitability. This all raises some difficult questions.
How do you push forward and win new business in this environment, whether that’s to grow or simply to survive? How do you ensure you’re bringing in the right clients, not just any clients? And how do you avoid making decisions out of desperation that could create bigger problems down the line?
There’s no silver bullet, but one thing is clear…
As independent insurance specialists, we have the privilege of working closely with a wide range of agencies, and with experts who spend their lives helping them navigate these exact challenges.
Next month we’re bringing some of those voices together for the Bulletproof Agency Network Conference, where you can share experiences, learn from others, and have honest conversations about what’s really going on.
It may not make things easier overnight, but it might just help you make better decisions, avoid costly mistakes, and feel a little less alone in the process. Because right now, that’s more important than ever.
We’d love you to join us on the 7th May! Find out more about the Conference and secure your spot here.
Photo by Labib Jaffar on Unsplash
Agencies - April 14, 2026
