Independent distribution intermediaries are stepping up their focus on growth, tech and strategic partnerships as they navigate a rapidly changing marketplace, according to new research from LIMRA and NAILBA.
The fifth edition of the Inside the Intermediary study examines how brokerage general agencies (BGAs) and independent marketing organizations (IMOs) are adapting their business models, strengthening partnerships, and investing in tools and services to support financial professionals across the independent distribution channel.
In a survey of more than 60 intermediaries, 85% said increasing sales of existing product offerings is a top strategic priority, while 82% are focused on expanding their network of financial professionals to meet rising consumer demand for protection and retirement planning solutions.
“The intermediary channel continues to play a critical role in connecting financial professionals with the tools, products, and support they need to serve families,” said Bryan Hodgens, senior vice president and head of LIMRA research. “This research shows intermediaries are investing in technology, relationships, and scale to remain competitive and support producer success.”
The findings suggest most BGAs and IMOs are looking to deepen penetration in core life, annuity, and protection products while broadening adviser reach, rather than relying primarily on entirely new product lines.
The study highlighted the growing influence of scale. According to the study, eight in 10 intermediaries report affiliation with a national marketing organization (NMO), underscoring the importance of shared services, broader product access, and competitive compensation structures.
Those affiliations often provide centralized marketing, compliance, and technology capabilities that smaller firms would struggle to build alone, but they also shape which carriers get shelf space and how products are positioned with advisors.
Carrier relationships remain central. When selecting partners, respondents cited product pricing (52%), streamlined underwriting (40%), and unique or broad product offerings (33%) as their top criteria. Many also pointed to the need for stronger communication, better data integration, and enhanced wholesaler support from insurers.
Separate Insurance Business research on claims has highlighted how service and operational friction are becoming competitive differentiators more broadly. One Accenture study cited in that work warned that poor claims experiences and inefficient processes could put up to $170 billion of global premiums at risk by 2027, emphasizing that ease of doing business and customer experience are now core to retention and growth, not just “nice to have” features.
Technology investment is accelerating as intermediaries seek to scale operations and improve producer support. Nearly half of firms surveyed said they plan to enhance technology solutions, and many are also expanding sales support and operational infrastructure.
A joint report from the Insurance Council of Australia and CSIRO identified five priority AI use cases for insurers: automated claims processing; fraud detection and prevention; AI‑driven underwriting and pricing; natural disaster risk modeling; and regulatory compliance automation. The report noted that as carriers use more automated underwriting and data‑driven risk models, brokers are taking on a larger role in interpreting complex outputs for clients and translating them into practical recommendations.
Within the intermediary channel, artificial intelligence is already in use. Half of respondents said they currently use AI tools such as ChatGPT, and another 18% plan to adopt AI in the near future to support marketing, productivity, and business insights.
Those adoption levels are broadly consistent with adviser sentiment elsewhere. Schwab’s 2025 Independent Advisor Outlook Study found that about two‑fifths of independent advisors expect AI to have its most significant impact on research and analysis over the next three years, while roughly one‑third anticipate changes in operational workflows. Meanwhile, a separate report on wealthtech found that 67% of advisors with subpar technology had lost prospects, 82% had lost clients, and 86% would consider switching firms over poor technology.
“The research underscores how the broad intermediary community continues to evolve to meet the needs of financial services professionals and the families and businesses they serve,” said Warren May, NAILBA leader. “IMOs and BGAs are increasingly investing in people, technology, partnerships and practice enhancement tools to help independent advisors deliver financial security solutions to their clients.”
Over the next few years, success for both carriers and intermediaries is likely to depend on how well they align around technology, connectivity, and shared growth priorities, the study noted.
