Special Report: PIA National and National Underwriter 2024 Independent Agent Survey Results

The 2024 Independent Insurance Agent Survey is done and the results of the 8th annual PIA National – National Underwriter survey are surprising, yet not surprising. Close to 80% of the 550 producers responding to the survey said they are satisfied with their work.

That’s not surprising.

The survey was done in four sections:

  • Demographics
  • Business challenges
  • Finances
  • Technology

With that, we’ll dive into the three reports filed by National Underwriter via its PropertyCasualty360.com website.

How many years have you worked in the P&C insurance industry?

Over 20 years — 75.9%

16 to 20 years — 10.33%

11 to 15 years — 5.62%

5 to 10 years — 4.53%

Less than 5 years — 3.62%

Your primary function at the agency?

Agency owner / principal — 70.7%

Employee or agent — 10.7%

Producer — 7.8%

Claims — 1.6%

Customer service — 1.4%

IT — 0.5%

Marketing — 0.5%

Other — 6.7%

Age

65 and older — 31.8%

60 to 64 — 18.7%

50 to 59 — 26.5%

40 to 49 — 16.9%

30 to 39 — 3.8%

Under 30 — 0.5%

Prefer not to say — 1.8%

Gender

Male — 66.7%

Female — 30.7%

Prefer to self-describe — 0.4%

Prefer not to say — 2.2%

How do you see your agency’s customer focus evolving over the next 5 years?

Expanding to cover a broader customer base — 41.8%

No change — 33.1%

Focusing on a niche and not a broad base — 22.7%

Other — 2.4%

How has the hard market conditions of the last year impacted sales or renewals?

Sales and renewals are down — 42.1%

Clients are amending coverages — 69.5%

I haven’t noticed a change — 12.1%

How have your relationships been impacted with carriers during these hard market conditions?

Very impacted — 68.8%

Not very impacted — 23.1%

No change — 8.0%

How has the hard market affected the retention rates for your agency?

We have more clients than a year ago — 41.7%

Our agency has fewer clients than a year ago — 31.0%

We have the same number of clients — 27.3%

Have you seen any shifts in strategies or efforts required for client acquisition during this period?

Yes, we are adjusting client retention strategies — 78.4%

No, we have not adjusted our client retention strategies — 21.6%

Have you received adequate support and resources from carries to help navigate hard market conditions?

Yes, we have been well supported by carrier partners — 37.5%

No, we could use more support from our carrier partners — 62.5%

How does your agency differentiate itself from direct competition?

Relationships — 89.7%

Service — 81.9%

Expertise — 73.0%

Advice — 67.3%

Choice — 38.7%

Coverage — 36.15

Location — 21.9%

Rates — 14.4%

Other — 5.1%

None of the above — 0.4%

On a scale of 1 to 10, with 0 being very unsatisfied and 10 being very satisfied, 7.98% are happy / satisfied are their with your work in insurance.

Part two of the survey looked at tech tools and artificial intelligence. Most of the 550 respondents are very open to using new technology. That, too, is not surprising since the previous surveys had similar responses.

Here are the results of the technology survey.

What are the functions that benefit most from use of AI in the independent insurance agency environment?

Data management — 45.9%

Marketing communications — 45.7%

Compiling reports — 33.3%

Processing forms — 32.7%

Customer service — 30.1%

Sales — 22.6%

Managing claims — 14.1%

Other — 15.2%

What are the risks you see related to using generative AI technology?

It can provide inaccurate information — 64.1%

Potential liability. Some content provided could be derived from copyrighted, trademarked or other protected material — 62.2%

Security of client data — 61.7%

Ownership and accuracy of information AI provides cannot be established — 59.6%

Use of voices AI in client-facing functions risks undermining the image of independent agencies as relationship-oriented, providing personal service — 59.0%

Licensing and regulation — 42.7%

Using a 0 to 100 scale, indicate the degree to which technology facilitates…

Quoting — 85.14

Policy administration — 76

Renewals — 73.86

Client communications — 66.98

Marketing — 64.57

Training — 63.31

Office / staff management — 57.97

Prospecting — 53.44

Risk mitigation — 51.68

Recruitment — 46.94

Other — 63.86

Are you satisfied with the technology support by the companies?

Dissatisfied — 13%

Neutral — 66%

Very satisfied — 21%

Have you received sufficient training and support for the technological tools you use?

Yes — 61%

No — 39%

How open are you to adopting new technologies that might enhance the work processes or client interactions?

I’m very open — 49%

It depends on the technology — 41%

Im happy with my current tools and processes — 10%

The third part of the results published by National Underwriter checked in with agents and agencies and looked at revenues. Most reported income growing in 2023. However, rising premiums and keeping clients continues to be a challenge.

The bottom-line, in spite of issues with technology, customers and staff difficulties, and regulators who continue to challenge, being an independent insurance agent is still a financially rewarding endeavor.

Here are the results of part three.

How does your agency primarily operate?

Retail agency — 79.3%

Retail broker / firm — 14.2%

Specialty wholesale agency/broker firm — 3.1%

Other — 3.4%

Your agency is a:

S Corporation — 44.0%

Limited liability company (LLC) — 27.1%

C Corporation — 18.0%

Sole proprietorship — 7.2%

Limited liability partnership (LLP) — 1.7%

Other — 2.0%

What percentage of property and casualty insurance does your agency write?

Personal lines — 55.9%

Commercial lines — 44.1%

Of the commercial lines clients, what percentage are:

Small business — 73.9%

Middle market — 20.0%

Enterprise level — 4.0%

Other — 0.9%

Over the last 12 months, how has your agency’s overall insurance production changed?

Increased by more than 10% — 29.0%

Increased by 6% to 10% — 28.1%

Increased by 1% to 5% — 16.0%

Stayed about the same — 12.5%

Decreased by 1% to 5% — 5.3%

Decreased by 6% to 10% — 4.6%

Decreased by more than 10% — 4.6%

Over the last 12 months, how has your agency’s overall gross income earnings changed?

Increased by more than 10% — 31.3%

Increased by 6% to 10% — 28.0%

Increased by 1% to 5% — 16.9%

Stayed about the same — 12.0%

Decreased by 1% to 5% — 4.6%

Decreased by 6% to 10% — 3.3%

Decreased by more than 10% — 3.9%

Source link: PropertyCasualty360.com — https://bit.ly/3Jeo0vz

Source link: PropertyCasualty360.com — https://bit.ly/4cBlVqX

Source link: PropertyCasualty360.com — https://bit.ly/3xbB81D

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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