J.D. Power and Associates says independent insurance agents are more satisfied than they’ve ever been with carriers. The report is titled, the J.D. Power 2023 U.S. Independent Agent Satisfaction Study.
Satisfaction — as with all J.D. Power studies — is based on a 1,000 point scale. Personal lines insurers got a boost of 17 points from a year ago for agents. Commercial lines saw a 6% rise.
That said, things are not all champagne and roses. J.D. Power spokesman, Stephen Crewdson said significantly higher prices have forced agents to shop for lower rates. They’re doing that even though they’re happy with the carriers they normally use.
“Carriers are doing a great job of providing quality service to agents and it creates a huge competitive advantage,” Crewdson noted. “Agents are more willing to place business with a carrier when they are more satisfied with their experience. However, the uptick in agents shopping their clients’ policies shows that rising premiums are the ultimate disruptor, threatening to upend even a strong existing relationship. That puts the onus on carriers to find ways to incentivize agents to stay by offering an experience that can justify these cost hikes.”
Here are the details:
- Agent satisfaction with carriers — as noted earlier — is at an all-time high
- Personal lines satisfaction is 774 — up 17% from a year ago
- Commercial lines agents rated a 762 — 6% higher than 2022
- 57% of personal lines agents are shopping their clients’ policies
- 52% of commercial lines agents are doing the same for businesses
The most common responses for why they place business with a specific carrier:
- 18% of personal lines agents said the ease of quoting
- For commercial lines that number is 17%
- Risk appetite is 13% for personal lines agents
- Risk appetite is 15% for commercial lines agents
Commission comes into play, too:
- 6% said commission and incentives helped for personal lines agents
- 5% said commission and incentives matter for commercial lines agents
Source link: Insurance Business America — https://bit.ly/3ZO0koY