J.D. Power has just issued its 2019 U.S. Independent Insurance Agent Satisfaction Study.
The second annual study, developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), evaluates the independent P&C insurance agent's business outlook, management strategy, and overall satisfaction with personal lines and commercial lines insurers in the United States.
According to JD Power, "It confirms that the more satisfied independent insurance agents are with a carrier, the more business they will conduct with that carrier. But unfortunately, it also finds that firms aren't in a position to take advantage of this, because overall agent satisfaction with the service they receive from insurers is among the lowest of business relationships measured by J.D. Power".
Read that again.
Following are key findings of the 2019 study:
* Independent agent satisfaction with carriers linked to placement rate: There is a strong relationship between higher levels of independent agent satisfaction and a greater number of business relationships with insurers. Likewise, independent agents that are more satisfied with the service they receive from insurers are more likely to recommend that carrier and place a greater number of products with that insurer
* Independent agents cite low satisfaction with carriers: Overall independent agent satisfaction with personal lines insurers is 733 (on a 1,000-point scale). For commercial lines, that score falls to 720. These are among the lowest overall satisfaction scores in any business study currently conducted by J.D. Power, lagging even financial advisors (737)
* Support/communication and quoting are keys to agent satisfaction: As the most important factors in determining agent satisfaction, the support/communication factor in personal lines and the quoting factor in commercial lines are key areas for insurers to focus to increase satisfaction