In the independent agency (IA) space, we’ve all heard it said that nothing happens until an agent sells a policy. With IAs controlling 62.2% of the United States property and casualty (P&C) marketplace and an 87% penetration rate in Commercial Lines, it’s clear that IAs play a critical role in keeping the economy moving. The independent agency force acts as an economic engine by providing risk mitigation, helping individuals and businesses manage unexpected risks so they can continue operating without significant financial setbacks. This mechanism fosters economic growth and investment by making insurance available as collateral for loans, enabling individuals and businesses to access financing.

After natural disasters or catastrophic events, insurance supplies the financial means for recovery, aiding in the economy’s rebound. Insurance also supports investment in riskier ventures by providing a safety net against potential losses, and encouraging innovation and economic development—all while creating jobs in various roles, from agents and underwriters to claims adjusters and risk managers. By providing financial security and stability, insurance plays a key role in maintaining a healthy and functioning economy.

To benchmark carrier performance in Ohio, OIA recently surveyed agents across the state, collecting insights from over 350 agents about their top three carriers. Below are three key takeaways from the survey and how OIA’s Carrier Relations Committee aims to foster open dialogue to strengthen these relationships, keeping this economic engine finely tuned.

Insights from Carriers

As a side note, it’s important to highlight that OIA and the Carrier Relations Committee reached out to carriers to understand what they value most in polling their agents, as well as what some of Ohio’s largest agencies look for in their own carrier surveys. In 2023, the Carrier Relations Committee engaged multiple carriers to explore trends, such as the higher loss ratios often seen in new business compared to renewals. The survey, linked at the bottom of this article, reflects OIA member sentiments across categories like commissions, competitiveness, claims handling, technology, and turnaround times. We’re excited to share these findings, providing a comprehensive view of current trends, challenges, and opportunities within the insurance landscape.

Key Takeaways from the Survey:

1. Transparency and Communication from Carriers: Agents are calling on carriers to communicate openly about how they’re solidifying their balance sheets and books of business, particularly when making difficult business decisions that affect policyholders and agents. Whether carriers are restricting new business, tightening underwriting, non-renewing traditionally profitable accounts, reducing commissions, or adjusting business models, agents believe that carriers can’t over-communicate their intentions enough.
2. Focus on Field Staff and Agent Engagement: Carriers with active field staff who invest in the IA channel are the ones where agents tend to focus their growth efforts and place their best accounts. When carriers pull back on these resources, agents notice. Carriers that support the IA channel through strategies centered around agency engagement create a more mutually beneficial relationship. Carriers that engage primarily through virtual or technological methods typically don’t rank as top options for agents, who prefer more direct, personal engagement.
3. Captive Carrier Rate Increases and Opportunity for IAs: The top five captive carriers in Ohio raised their premiums by an average of 14.9% in 2023, challenging their agents in client retention and agency growth. Agents are looking to IA carriers as loyal partners who can pick up displaced policyholders. Consistent communication, clear underwriting guidelines, cohesive growth strategies, and strong relationships are key to achieving this partnership.

Final Thoughts

It’s encouraging to see many of our Company Partners stepping up to foster agent relationships in a variety of ways. Some carriers provide agents with sales enablement tools, such as insights into customer premium shopping habits. Others are co-oping with our members for OIA affiliate IA Valuations, equipping agencies with business planning tools to work not just in their business but on their business. Some partners have even sponsored OIA member attendance at our events—a much-appreciated touch. OIA also offers a Hard Market Toolkit to help agents handle tough customer conversations, but agents have voiced the need for additional carrier support in local publications, such as Crain’s Cleveland Business, Columbus Business First, and Cincinnati Business Courier.

Stay tuned for the upcoming release of the Big “I” Agents Council for Technology (ACT)’s “A Letter to the Industry,” a product of facilitated discussions at Ivans Connect on September 9th, 2024, in Nashville, TN. This publication will highlight industry participants’ commitment to advancing a more connected experience for agents, clients, and carriers alike, and we’ll share it once available.

Get Involved

If you serve on a Carrier Council in any capacity, we’d love to hear from you to explore opportunities for collaboration. If you’re interested in joining the Carrier Relations Committee, please reach out to Dustin Mahrt at dustin@ohioinsuranceagents.com.

Thank you for your dedication and commitment to advancing the insurance industry!

OIA’s 2024 Carrier Insurance Carrier Satisfaction Survey

Other articles of interest:

J.D. Power and Big ‘I’ Study: Agents’ Carrier Relationships in Hard Market

Long Live the Insurance Agency (2022)

About the Author:

Dustin is Company Partners Manager here at OIA & considers himself an industry “lifer” with 20 years of industry experience.  Upon graduating in 2003 from Ohio University with a finance degree, Dustin started off in sales at his best friend’s Dad’s captive agency. He has underwritten & managed territories for Buckeye Insurance Group (Piqua, OH) & has worked with carriers to recruit agents into the industry.  This is Dustin’s 2nd stint @ OIA, the 1st stint being the pre-Big “I” merger at PIA on the E&O team. In between stints, he helped State Auto’s Product team implement their digital Commercial Auto product in their 33 operating states.  He brings a passion for our industry & has achieved the API (Associate in Personal Insurance) designation from the American Institute For Chartered Property Casualty Underwriters (The Institutes).