Although the pandemic may have presented an opportunity for independent insurance agents to better serve customers, a new report from J.D. Power found that agents are “facing headwinds” due to complications related to the global outbreak and increasing competition.
J.D. Power’s latest study, the “2020 US Independent Agent Performance and Satisfaction Study,” is the analytics and intelligence company’s third in its annual series. Developed together with the Independent Insurance Agents & Brokers of America (IIABA), the study evaluates the evolving role of independent agents in P&C insurance distribution, general business outlook, management strategy, and overall satisfaction with personal lines and commercial lines insurers in the US.
Key findings of the study include:
The study also ranked the carriers with the highest overall satisfaction score among independent insurance agents. Auto-Owners Insurance came out on top with an overall satisfaction score of 816, followed by Safeco with 761, and Chubb with 755.
“The effects of COVID-19 have highlighted the importance of personalized insurance as consumers seek help navigating their way through this period,” said J.D. Power head of property & casualty insurance intelligence Tom Super. “Ironically, in many instances it was direct-based carriers, which have made a concerted effort in recent years to emulate the high-touch and high-quality agent experience, that were able to step up and deliver during this crisis.”
Super added that the independent insurance agent channel should be using this moment as a learning experience, and redouble their efforts toward improved alignment, execution, and efficiency.