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J.D. Power: Insurers With Satisfied Agents Get More Business From Those Agents

Insurers whose agents are highly satisfied tend to receive a considerably greater share of business from those agents, according to the J.D. Power and Associates...
February 18, 2010

Insurers whose agents are highly satisfied tend to receive a considerably greater share of business from those agents, according to the J.D. Power and Associates 2010 Insurance Agency Satisfaction Study-Personal Lines (SM). The study finds that, on average, there is more than a 150-point gap in agency satisfaction between insurers who receive 5 percent or less of an agency's business and those who receive more than 60 percent of an agency's business. In addition, 77 percent of highly satisfied agents say they intend to increase business with an insurer, while only 24 percent of less-satisfied agents say the same.

"Individual policyholders are more likely to be loyal to their independent agent than the insurer that writes their policy," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "This strong bond between policyholders and insurance agents makes it essential for insurers to satisfy their appointed agents in order to grow their business."

The study also found that while the contact an insurer has with an agency is the main driver of agency satisfaction, the level of satisfaction varies depending on the role the individual holds in the agency. Agency principals are less satisfied with insurers than are agents or producers, particularly in the area of key business contact. Similarly, agency principals are less satisfied than their licensed customer service representatives with the technology interfaces offered by the insurers they work with.

Agents Satisfied With Insurer Drive Business to That Insurer (J.D. Power 2/11/10)

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