Intermediary distribution: Navigating a moving marketplace

Expansion and consolidation continue to dominate the independent distribution market, according to the latest LIMRA and NAILBA “Inside the Intermediary” study.

The study, conducted in early fall 2025 with more than 60 brokerage general agency and independent marketing organization respondents, reveals 8 in 10 intermediaries report affiliation with a national marketing organization. The primary reasons are to remain competitive (37%) and for better compensation (20%). These motivations reflect a fundamental reality — affiliation can expand access to resources, technology and carrier relationships in ways that smaller organizations may find difficult to replicate on their own.

A producer force balancing experience with expansion

Producer demographics highlight both strength and vulnerability. Experienced professionals anchor today’s intermediary field force: 38% are age 55 or older, and another 34% are between ages 45 and 54. Tenure reflects similarly deep experience, with 28% working in the industry for more than 20 years and most having more than a decade of service.

This depth is valuable, but it also signals a challenge ahead. The data suggest that growth will require more than shifting producers between firms. Although 77% of intermediaries expect their producer networks to grow over the next three years, this anticipated expansion may not necessarily represent new entrants. It could reflect continued movement within the existing, aging talent pool. The study finds intermediaries are actively working to build their rosters. In the past year, firms signed a median of 45 new producers — 92% of these new entrants operate as independent producers.

Evolving carrier relationships and service needs

The study shows intermediaries recognize their relationships with carriers remain central to distribution success, and the study highlights a clear hierarchy of what drives placement decisions. 

Intermediaries also described where carriers can improve support. They cited the need for faster turnaround times, including in licensing, contracting, underwriting and problem resolution. There is also a strong desire for more personal contact and communication from carrier home offices, as well as direct data feeds to streamline new and in-force business processing. As producer networks grow and case volumes increase, intermediaries view personal contact not as a courtesy but as an essential part of efficient, high‑quality service.

Strengthening support through technology

Intermediaries continue to invest heavily in the support systems that keep producers competitive and productive. Their largest financial commitments include advanced sales and underwriting support, concierge‑level service for top producers, and seminar programs that help drive new business. They’re also upgrading the infrastructure behind the scenes, from back‑office systems to digital delivery, marketing tools and customer relationship management platforms. The biggest shift, however, is the rapid rise of artificial intelligence.

Half of intermediaries already use tools such as ChatGPT, and another 18% plan to adopt them, applying these capabilities in marketing, sales enablement and productivity. For many firms, AI represents the most immediate opportunity to automate routine tasks, accelerate content creation and support producers more efficiently. When combined with broader technology and service investments, AI is becoming a practical extension of intermediaries’ commitment to improving the producer experience and strengthening their competitive edge.

Intermediaries are responding to shifting market forces with thoughtful investments in scale, producer experience, carrier collaboration and modern technology. The next advantage will belong to firms that integrate these efforts, pairing strong relationships with smarter infrastructure and practical AI use. 

Those that act now will not only keep pace with a changing distribution landscape but also help define what success looks like in the years ahead. For carriers, the message is equally clear: The partners who deliver speed, transparency and meaningful field engagement will be the ones intermediaries choose to grow with. 

Erin Bowler is senior research analyst, distribution research, LIMRA and LOMA. She may be contacted at [email protected].