Big ‘I’ and Reagan Consulting Release 2026 Best Practices Study Update   

Best Practices agencies maintain high profitability as property & casualty market softens.

ALEXANDRIA, VA, August 12, 2026—Best Practices agencies continue to deliver excellent profitability above pre-pandemic historical averages, even as organic growth slowed due to a softening property & casualty market, according to the 2026 update of the Best Practices Study by the Big “I” and Reagan Consulting.  

With softening rates, organic growth for Best Practices agencies decelerated in six of the seven revenue bands. Results ranged from 6.2% to 10.2%, down from a 2025 range of 8.7% to 11.3%, according to the study. Organic growth is tied to four factors: new business, account retention, P&C rates and GDP.

However, these top agencies were able to maintain profitability through this period of slowing growth. Pro Forma EBITDA (earnings before interest, taxes, depreciation and amortization) margins ranged from 23.2% to 30.7% across revenue categories, providing these agencies with a firm financial footing to invest in talent and technology as the market evolves.

The Best Practices Study update is the second of a new three-year cycle, examining the firms that qualified as a 2025 Best Practices agency. The annual study, conducted jointly in a longstanding partnership between the Big “I” and Reagan Consulting for the past 33 years, provides critical performance benchmarks across agency revenue categories ranging from under $1.25 million to over $100 million.  

“Best Practices agencies are meeting the evolving P&C insurance market from a position of strength,” says Charles Symington, Big “I” president & CEO. “Even as organic growth moderates, these agencies have still been able to deliver solid profitability thanks to operational efficiency and sound leadership. Their performance shows success comes from building a resilient business, which is what the independent insurance agency channel has always done.”

The Best Practices Study analyzes takeaways from nominated Best Practices firms throughout the nation that have been recognized for outstanding management and financial achievement in categories such as income and expense distribution; revenue and profitability growth; staff compensation and productivity; technology expenses; and P&C and life-health carrier representation.   

“Many Best Practices agencies continue to perform at high levels while further strengthening their ability to perpetuate long-term, despite the current insurance climate,” says Webb Milward, a partner with Reagan Consulting. “We expect most Best Practices agencies to adopt new strategies including additional investment in producer recruitment and development that will help them continue to grow and thrive in the softer market.”

Key findings from the update include:  

• Profitability continues to shine. Pro Forma EBITDA margins ranged from 23.2% to 30.7% across revenue categories. The top-performing quartile of the under $1.25 million group posted margins of 42.5%. These margins are strong enough that slowing organic growth did not significantly impact profitability.
• Organic growth cools. Organic growth rates for Best Practices agencies slowed in six of the seven revenue bands. Personal P&C lines growth improved for the under $1.25 million group but fell for the $1.25-$2.5 million group. Commercial lines growth slowed in all revenue bands but one due to a continued softening in the P&C rate environment.
• The Rule of 20 dipped from last year’s record high. The Rule of 20 is calculated by adding organic growth to 50% of pro forma EBITDA. Most revenue bands remained near or above the 20-point threshold associated with a top-performing agency. This year’s median scores ranged from 19.3 to 26.1, down from a 2025 range of 19.0 to 29.5.   
• Sales velocity remains healthy. In five of the seven revenue categories, sales velocity exceeded the 12% threshold to be considered a healthy sales culture. In most revenue bands, producers aged 36-45 generate the largest share of new business. Agencies under $1.25 million are the exception, as producers aged 46-55 generate nearly half of that band’s study-leading 16.6% sales velocity.
• Additional investment in producer recruitment and development will be key. Net unvalidated producer payroll (NUPP), a measure of successful producer recruitment and development, ranged from 0.0% to 1.7% across revenue groups. A healthy NUPP investment is 1.5%-2.0%. Agencies must continue investing in new producer development to ensure their growth engines are ready to pick up the slack as the P&C market softens.

The annual Best Practices Study began in 1993 as a joint initiative between the Big “I” and Reagan Consulting and studies leading agencies and brokers in the country to help independent agents build the value of their agencies.  

For more information on the Best Practices program, or to purchase a copy of the 2025 Best Practices Study or 2026 Best Practices Study Update, visit the Big “I” Best Practices webpage.

For a press copy, reach out to Will Jones, Big “I” director of communications.  

Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations. Big “I” members are trusted insurance advisers who offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a choice of insurance companies. 

Media contact: Will Jones, (703) 706-5438, william.jones@iiaba.net.