Why 2026 Is an Investment Year for Insurance Agencies (And Why Waiting Until January Is a Mistake)

Every year, I see the same pattern play out across insurance agencies.

January hits.

Phones are quiet.

Producers are anxious.

Owners are scrambling to “turn marketing back on.”

And the common phrase I hear is:

“We’ll figure it out once the year starts.”

That mindset is exactly why so many agencies struggle to gain traction early in the year.

2026 growth doesn’t start in January.

It starts with decisions made before January arrives.

This isn’t about perfection.

It’s about planning, realism, and understanding what growth actually costs today.

Growth Is Not an Accident

Insurance agencies don’t fail because they don’t work hard.

They fail because growth is treated like something that should just happen.

In reality, growth is an investment decision.

If you don’t decide:

how many policies you want,

how many leads you need,

and what you’re willing to invest monthly,

then you’re not planning—you’re hoping.

Hope is not a strategy.

Start With a Realistic Revenue Goal

Let’s walk through realistic numbers, not best-case fantasies.

Assume your goal for 2026 is $300,000 in new business.

If your average policy is $1,700, that means you need roughly:

175 new policies for the year

or about 15 policies per month.

That’s not aggressive.

That’s reasonable for a growing agency with staff in place.

But here’s where most agents stop—and where the math breaks down.

You Will Lose Policies (And You Must Plan for That)

Every agency experiences attrition.

Customers move. Rates change. Life happens.

A 10% policy loss ratio is normal.

That means if you only plan for 175 new policies, you’re actually planning to stand still.

To grow and replace lost business, you need closer to:

190–195 new policies for the year

or about 16 policies per month.

Ignoring attrition is one of the biggest planning mistakes agencies make.

Let’s Talk About Closing Rates (Honestly)

Most agents overestimate how many leads they convert.

Across agencies, a 13% close rate is realistic.

That means:

You close about 1 out of every 8 leads

You need volume and consistency, not miracles

If you want 16 new policies per month, you’ll need approximately:

123 leads per month

That’s not a guess.

That’s math.

The Reality of Lead Costs in 2026

Lead costs vary by market, but a $9 per lead planning number is realistic and conservative for many agencies running local campaigns correctly.

123 leads × $9 =

~$1,100 per month in lead cost

At this point, many owners feel relieved.

“That’s not bad.”

But this is where another mistake happens.

Lead Cost Is Not Your Total Investment

Leads alone do not build agencies.

Your monthly investment includes:

Advertising spend

Marketing or ad management services

CRM systems and tracking

Follow-up tools and automation

Anything directly tied to bringing in new business

When you add those together—and account for replacing lost policies—most agencies land in the range of:

$2,500–$3,500 per month total investment

This is not reckless spending.

This is controlled, intentional growth.

Expense vs Investment: The Mindset Shift

Agencies that struggle see marketing as an expense.

Agencies that grow see it as an investment.

An expense feels painful.

An investment has a return.

If you spend $3,000 per month and generate:

15–20 new policies

consistent inbound calls

predictable pipeline

You’re no longer guessing.

You’re operating a business, not reacting to the calendar.

Why Waiting Until January Hurts More Than You Think

When agencies wait until January to:

turn ads back on

fix broken follow-up

train staff

adjust messaging

they lose momentum before the year even begins.

January should feel calm.

January should feel prepared.

The agencies that feel confident early in the year didn’t rush—they prepared.

They set budgets.

They launched systems.

They let data accumulate.

And they adjusted before panic set in.

It Doesn’t Have to Be Perfect—It Has to Be Active

One of the most damaging beliefs I hear is:

“I just want it done right before we start.”

Perfection delays progress.

A simple plan beats no plan every time.

You can:

refine ads

improve scripts

optimize systems

But only if something is already running.

Momentum comes from action.

The Bottom Line

2026 is not the year to “see what happens.”

It’s the year to:

decide what growth looks like,

understand what it costs,

and invest with intention.

You don’t need massive budgets.

You need clarity.

And clarity removes stress.

Final Thought

Agencies that struggle in January usually made the same mistake months earlier:

They waited.

Agencies that grow decide early, invest wisely, and adjust often.

2026 belongs to the prepared.

Need Help Planning?

If you’re already advertising and have 4 or more staff, I offer short planning calls to help agency owners pressure-test their numbers, loss ratios, and monthly investment strategy.

You don’t need more noise.

You need a clear plan.

—

Coach Berk

Helping insurance agencies build predictable growth

CoachBerk.com