Amid the myriad of changes affecting the independent agency system, and the twin dynamics of digital transformation and economic uncertainty, there is one constant that independent agents have never been more satisfied with, their insurance carrier partners. According to data released by J.D. Powers’ in its 2022 U.S. Independent Agent Satisfaction Study, agent satisfaction with both their personal and commercial line insurers has reached an all-time high.
“The past two years have been tough for insurance agents, particularly in the commercial lines space where many businesses have been struggling,” said Stephen Crewdson, senior director, insurance business intelligence at J.D. Power. “What we’re seeing now in the data is the normalization of the marketplace and a return to more frequent and more positive interactions between agents and carriers. Importantly, we’re also seeing trends that suggest the changes made since the pandemic—such as increased digital engagement and updates to legacy systems with new platforms and portals—are having a positive effect on the agent/carrier relationship.”
Three Massachusetts-based insurers rake the list
Previously known as the J.D. Power U.S. Independent Agent Performance and Satisfaction Study, the three-month study, conducted from May through July 2022, received approximately 4,670 agent evaluations of personal and commercial lines insurers with whom they had place policies during the past 12 months. Of those, results Erie Insurance ranked highest among independent insurers for personal lines, followed by Auto-Owners Insurance and The Hanover.
Two other Massachusetts largest personal lines insurer, however, also made the list this year. The Commonwealth’s largest carrier, MAPFRE, along with the Boston-based online platform, Homesite, rounded out the top ten list. The following is a complete list of the top ten insurers as ranked by agent satisfaction:
Turning to commercial lines Auto-Owners ranked highest in this category followed by Cincinnati and The Hartford. As for any Massachusetts-based insurers on this list, Boston-based Liberty Mutual, currently the third largest commercial auto carrier in Massachusetts, was ranked sixth in satisfaction by independent agents.
Key findings
In addition to ranking insurers by overall agent satisfaction, the following are three key findings J.D. Power’s highlighted from this year’s study:
- Agent satisfaction reaches all-time high: Overall satisfaction among personal lines agents is 757, up 7 points from 2021, while overall satisfaction among commercial lines agents is 756, up a significant 16 points from a year ago. The largest gains in satisfaction with commercial lines are in product offerings and risk appetite; support and communication; quoting; and commission.
- Engagement increases, led by digital: The use of digital channels for interaction with carriers increases 22 percentage points this year, while in-person interaction increases 8 percentage points. Overall satisfaction is highest when agents interact via digital channels.
- Seamless portal integration drives higher satisfaction scores: Digital carrier platforms and web portals, which have been widely updated by the industry during the past few years, can have a positive effect on agent satisfaction—but only if they are fully integrated. Complete seamless integration between carrier portals and agency management systems drives a substantial boost in agent satisfaction, but incomplete or inconsistent integration has a negative effect on satisfaction. Just 51% of personal lines agents and 46% of commercial lines agents say they have seamless integration with carrier portals.
- Keeping the relationship fresh: Agents with the highest levels of satisfaction fall into the relationship tenure sweet spot of 2-10 years. Agents who have been working with carriers for both shorter and longer periods of time are less satisfied overall, suggesting that carriers need to refine their approaches to newer as well as more seasoned agents.
How the survey was conducted
The survey evaluates and rates independent agents’ views on the changing dynamics of in the independent agency system, agents’ business outlook for the future as well as their overall satisfaction with U.S. personal and commercial line insurers. Over the course of three months, from May through July 2022, J.D. Power gathered approximately 4,670 agent evaluations of insurers with whom they had placed policies with during the past 12 months which it used to compile the ranking and results.
