JD Power Agents survey reveals top ranked P / C carriers (story in charts)
Do not neglect anymore. Independent agents are feeling the love of P&C insurance companies and the scores they give insurance companies are increasing, reports JD Power.
According to the results of the JD Power 2021 study on the performance and satisfaction of independent agents in the United States, published on October 5, the satisfaction of agents reached a record level since 2018, the overall satisfaction scores of the agents of the lines personal and commercial exceeding 54 points. the four-year period.
Erie Insurance and Auto Owners’ Insurance Receive Top Ratings from Personal and Business Line Agents
For individual agents, the overall satisfaction score for 2021, measured on a scale of 1,000 points, reached 750, up 18 points since 2020; for commercial lines, the overall score for 2021 is 740, an increase of 29 points from a year ago.
In a media statement, JD Power said the latest year-over-year gains in quote satisfaction, support, communication and service have helped boost overall scores.
“Over the past year, some of the industry’s most notable acquisitions and investments in operating models have brought the independent agent channel back to the forefront, resulting in improved agent-carrier relationships.” said Tom Super, P&C insurance intelligence manager at JD. Power, in a press release.
Compare that to what JD Power said in 2019, when the company headlined its media statement with the headline “Insurers Run Out of Independent Agents Despite Critical Role Agents Play in Doing Business” and reported that the overall satisfaction scores for independent agents were 735 for personal insurers and 720 for businesses were “among the lowest overall satisfaction scores of any business survey currently conducted by JD Power, behind even advisers financial (737) ”.
The 2021 JD Power report is the second investigative report in recent days and reveals that carriers are attentive to the wants and needs of agents. At the end of last week, Celent, a global research and technology consultancy for financial institutions, offering the results of a separate survey conducted from a carrier perspective, indicated that 94% of the 35 North American carriers have said they want to create above-average digital experiences for agents, with a third of those aiming to be “world class”.
The best and the worst
Erie Insurance debuted in the JD Power poll this year, leading all other personal insurers with an overall satisfaction score of 857, more than 100 points above average.
Auto owners insurance ranked second among personal lines insurance companies, and Safeco ranked third.
Auto owners and Safeco both reported above industry average overall satisfaction in each of the four years, but the auto owners score has steadily increased while Safeco’s fluctuating scores are closer to the industry average.
The most dramatic increase in agent personal line satisfaction scores over the past year has been recorded by Nationwide, with a score of 714 from 621 in 2021. Although the Columbus, Ohio-based carrier is not listed in the 2018 rankings, its scores have remained below the industry average for the past three years.
On the commercial lines side, Nationwide saw its score surpass 700 for the first time this year, rising to 714 for 2021 from 621 in 2020.
(Editor’s note: JD Power has not assigned top rankings or published scores for commercial line insurers in 2020. For a segment to be eligible, at least four insurers must achieve at least 100 completed surveys and hold at least 67% of the market share, which did not happen in 2020, a representative of JD, Power. JD Power, however, shared the scores with Carrier Management, which are included in some of the charts accompanying this article .)
AIG has made a more impressive climb from a score below 700 over the years. Although not ranked in 2020, AIG has seen its satisfaction score with commercial line agents drop from a low of 585 in 2018 to 732 in 2021.
In 2021, automobile owners’ insurance ranked first among commercial line insurers with an overall satisfaction score of 838, up from 821 in 2020. Automobile owners did not appear in the commercial lines rankings in 2018-2019.
For 2021, The Hartford (777) ranks second and Liberty Mutual (750) ranks third.
Hartford, Liberty Mutual and AIG and Travelers are the only four commercial insurers ranked by JD Power in 2021 that have also been ranked in each of the previous three years (with at least 100 surveys completed for the company).
While scores for The Hartford and Travelers have hovered near the industry average in previous years, The Hartford, slightly higher in 2018 and 2019, and up 45 points above Travelers in 2021, has maintained its position in second place for all years. except 2020.
Liberty Mutual, which ranked No.1 in 2018 and 2019, fell to third in 2020 and 2021, as the rest of the industry improved at a faster rate.
JD Power also summarized other industry-wide findings on multi-line agents, the scoring differences between different agency sizes, and agent use of operator digital tools. Among other results
- Multiline operators. Overall satisfaction is significantly higher among agents who offer health, life and group insurance coverage as well as property and casualty coverage than among those who only offer property and casualty policies. Agents serving multiple routes also report greater flexibility and support from their carriers.
- Agency size. The largest sales agents (those with more than $ 500,000 in direct written premiums) and agents with the smallest business volumes (less than $ 15,000 in direct written premiums) reported declines in satisfaction in 2021. “Problems at both ends of the spectrum involve communication challenges as accounts become more complex and as agents require more hands-on training and support,” said JD Power.
- Digital tools. Agent usage rates have remained stubbornly low, even for two interaction channels that did not show a drop in usage in 2021: the digital chat and the mobile app. But overall satisfaction is significantly higher among agents who use them, said JD Power, reporting that 12% of agents surveyed use digital chat and 11% use mobile apps.
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