Tighter Underwriting Standards Strain Independent Agents’ Relationships with Insurers, J.D. Power Finds

October 01, 2024 at 08:00 AM EDT

Agent Satisfaction Holds Strong Despite Challenging Environment

Independent insurance agents have been on the front lines of the most challenging markets in history, often serving as the intermediary between anxious clients and steadily rising rates or dramatic market exits on the part of insurers. According to the J.D. Power 2024 U.S. Independent Agent Satisfaction Study,^SM released today, overall agent satisfaction with insurers of both personal lines and commercial lines has held strong, with commercial lines satisfaction reaching an all-time high. Areas in which some insurers are succeeding in helping independent agents navigate this challenging market are improved quoting platforms, agent training and incentives.

The study was developed in conjunction with the Independent Insurance Agents & Brokers of America (IIABA). It evaluates the evolving role of independent agents in property and casualty (P&C) insurance distribution, general business outlook, management strategy and overall satisfaction with personal lines and commercial lines insurers in the United States.

“Carriers that recognize the challenges independent agents are facing—and help them navigate those obstacles through a combination of education, easy access to quoting tools and incentives—are managing to earn agent loyalty and satisfaction despite the tough market,” said Stephen Crewdson, senior director of insurance business intelligence at J.D. Power. “Agents’ jobs have gotten harder, and a larger portion of agents are proactively shopping ahead for clients. Insurers that want to keep earning agents’ business are finding ways to partner with them every step of the way.”

Following are key findings of the 2024 study:

Commercial lines agent satisfaction surpasses previous all-time high: Overall satisfaction among commercial lines agents is 781 (on a 1,000-point scale), up 19 points from 2023, while overall satisfaction among personal lines agents is 774, flat from a year ago. This is the first time agent satisfaction with commercial lines has surpassed that of personal lines.

Agents’ jobs keep getting harder: More stringent underwriting standards and a reduction in the number of clients who qualify for a policy have made it more difficult for independent agents to work with insurers. Across both commercial and personal lines, agents cite higher effort to work with insurers and reduced flexibility in the onboarding process.

Agents actively shopping on behalf of their clients: Most independent agents in commercial (54%) and personal (62%) lines say they are proactively shopping ahead for clients more now than they were two years ago, typically in search of lower rates and better product coverage.

Offsetting the challenges: Carriers that have been able to maintain the strongest relationships with independent agents have done so by improving their quoting platforms to make it easier to initiate new quotes; increasing communication with agents, both during the claims process and through educational and career development initiatives; and through the use of incentives such as cash rewards, trips and prizes.

Study Rankings

Erie Insurance ranks highest among insurers for personal lines, with a score of 862. Auto-Owners Insurance (845) ranks second and The Hanover (800) ranks third.

Auto-Owners Insurance ranks highest among insurers of commercial lines for a fourth consecutive year, with a score of 844. The Hartford (815) ranks second and Zurich (801) ranks third.

See the rank chart for each segment at http://www.jdpower.com/pr-id/2024112.

The U.S. Independent Agent Satisfaction Study measures P&C insurance independent agent satisfaction with insurers based on six factors (in alphabetical order): claims process; commission; product offerings and risk appetite; quoting; servicing policies; support and communication. The study is based on responses of 4,918 evaluations of personal and commercial lines insurers with which agents had placed policies during the prior 12 months. It was fielded from May through August 2024.

For more information about the U.S. Independent Agent Satisfaction Study, visit

https://www.jdpower.com/business/insurance/independent-agent-satisfaction-study.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001841597/en/

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Media Relations Contacts

Geno Effler, J.D. Power; West Coast; 714-621-6224; media.relations@jdpa.com

John Roderick; East Coast; 631-584-2200; john@jroderick.com

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Tighter Underwriting Standards Strain Independent Agents’ Relationships with Insurers, J.D. Power Finds

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