Insurance agents' bread-and-butter business already faced many challenges before the COVID-19 pandemic hit: direct-to-consumer insurers and changing consumer expectations put the pressure on agent-based carriers to innovate to stand out from the competition. According to the J.D. Power 2020 U.S. Independent Agent Performance and Satisfaction Study released in November, misalignment and poor execution continue to plague many personal and commercial lines insurers. The study, which was conducted in partnership with the Independent Insurance Agents & Brokers of America (IIABA), evaluates the role of independent agents in P&C insurance distribution, general business outlook, management strategy, and overall satisfaction with U.S. insurers. "The effects of COVID-19 have highlighted the importance of personalized insurance as consumers seek help navigating their way through this period," Tom Super, head of property & casualty insurance intelligence at J.D. Power, said in a press release. "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. The independent agent channel should use this as a learning experience and redouble efforts toward improved alignment, execution, and efficiency to drive more beneficial customer outcomes." |

The study's key findings

The 2020 U.S. Independent Agent Performance and Satisfaction Study surveyed P&C independent agents from September-November 2019 and July-September 2020 and gathered 1,817 evaluations of personal lines insurers with which agents had placed policies within the prior 12 months. Among the study's findings, 36% of independent agents said they were unaware of their carriers' efforts during the pandemic. Of the independent agent customers who participated in the study, 42% said they were contacted to help manage their policy costs during the global crisis. For comparison, 52% of direct-model carrier customers said the same. Eighty-one percent of consumers who participated in the study also said they would be open to working with virtual agents to perform core insurance duties — a cause of concern for traditional agency distribution. One other interesting find was the correlation — or lack thereof — between commission and satisfaction. "The notion that simply paying agents a higher commission translates to higher agent satisfaction and improved business outcomes is not true," said J.D. Power in a release. "Many of the top-performing agent-based insurers have been able to maintain expense discipline while also delivering on agent expectations." Click through the slideshow to reveal the personal lines insurers agents rated highest for performance and satisfaction in 2020, according to J.D. Power. Related: |

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