J.D. Power: U.S. Agents Highly Satisfied, But Switching Risks Rise
The 2024 U.S. Independent Agent Satisfaction Study by J.D. Power has revealed a high level of satisfaction among agents with their carrier partners. However, the competitive market is driving agents to shop around, raising switching risks for insurers. Top-rated carriers are focusing on robust quoting tools, ongoing communication, and incentives to maintain strong relationships.
Erie Insurance topped the personal lines category with a score of 862, while Auto-Owners Insurance led in commercial lines with a score of 844. Overall satisfaction in commercial lines reached 781, a record high, and personal lines satisfaction held steady at 774. Agents appreciate carriers that proactively support them, making these insurers stand out as 'go-to' partners.
However, the market is dynamic. A growing number of agents are actively seeking alternatives due to better coverage options or lower rates. This increased shopping around raises the risk of agents switching carriers. Insurers that don't maintain responsive communication and flexible processes may struggle to retain their agents. Stricter underwriting standards and less flexible onboarding processes are also posing challenges to insurer-agent collaboration.
Carriers that invest in streamlined systems, strong communication, and agent incentives appear to be retaining loyalty. The top-rated carriers in the study demonstrate this commitment. As agents continue to shop around, insurers that prioritize these aspects may have a better chance of maintaining strong relationships and reducing switching risks.
