Independent insurance agents’ satisfaction with personal and commercial lines insurers has held strong despite a challenging environment, yet tighter underwriting standards strain their relationship with insurers, a J.D. Power study has found.
According to the J.D. Power 2024 U.S. Independent Agent Satisfaction Study, “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, developed in conjunction with the Independent Insurance Agents & Brokers of America (IIABA), 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.
Among its key findings, it revealed that commercial lines agent satisfaction surpasses previous all-time high, at 781 (on a 1,000-point scale), up 19 points from 2023.
According to analysts, this is the first time agent satisfaction with commercial lines has surpassed that of personal lines, which was 774, flat from a year ago.
The study also found that agents’ jobs keep getting harder, mainly due to 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.
Throughout commercial and personal insurance lines, agents frequently encounter challenges such as increased effort in collaborating with insurers and limited adaptability during the onboarding process.
Most independent agents in commercial (54%) and personal (62%) lines also said that they are proactively shopping ahead on behalf of their clients more now than they were two years ago, typically in search of lower rates and better product coverage.
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.
The study also found that carriers that have been able to maintain strong relationships with independent agents have done so by enhancing quoting platforms, increasing communication with agents, offering career development initiatives and providing incentives.
J.D. Power ranked Erie Insurance the highest among insurers for personal lines, with a score of 862. Auto-Owners Insurance (845) ranked second and The Hanover (800) ranked third.
According to the report, Auto-Owners Insurance ranked highest among insurers of commercial lines for a fourth consecutive year, with a score of 844. The Hartford (815) ranked second and Zurich (801) ranked third.
The post Tight underwriting standards strain insurer-agent relationship despite high satisfaction: J.D. Power appeared first on ReinsuranceNe.ws.