Why Are Independent Insurance Agents So Dissastisfied? A J.d. Power Expert Explains

“Whether it’s conscious or subconscious, when agents don’t feel valued, they will look to take their business elsewhere.”  Craig Martin, executive director of insurance intelligence at J.D. Power, recently spoke with InsuranceNewsNet to discuss the findings of the latest J.D. Power U.S. Independent Agent Satisfaction Study.

While independent insurance agents drive more than 61% of property and casualty (P&C) policy sales nationwide, many feel undervalued and underserved by their carrier partners, according to the agent satisfaction study.

This study reveals a widening gap: Agents generating the most P&C business increasingly do not feel like true partners. This is not just a morale issue; it directly affects where agents place business.

“While it’s a business relationship, agents are still people, and like all people, they want to feel valued and appreciated in their relationships,” said Martin.

Stakes are high

The stakes are particularly high in commercial lines. According to the study, agents who say they do not feel valued are seven times more likely to say they will do less business with a carrier over the next year compared with those who say they are valued.

Another area of concern is compensation.

Craig Martin“Only 1 in 3 agents strongly agree that the carriers’ compensation is competitive in the market,” Martin said. “While there are things that can be done in terms of both the commission and other incentives, a higher priority should be on making sure that the compensation plan is easy to understand.”

Over one in three agents find their carriers’ compensation packages confusing. This complexity, along with stagnant feelings of competitiveness, lowers satisfaction. Compensation scores lowest in personal lines and nearly lowest in commercial, suggesting a need to redesign and clarify pay structures.

Beyond pay, agents say many carriers do not meet their fundamental needs. Only 56% of personal lines agents and 57% of commercial lines agents report that their carriers clearly communicate risk appetite, signal which clients will qualify, or show flexibility when writing new policies.

"Independent insurance agents are on the front lines of a tough market, with rates at or near historic highs and many insureds shopping for new policies," Martin added. "Too often, agents lack vital information to work efficiently, wasting time and resources for both agents and carriers."

Trust in carriers

Trust is another sore spot.

“Independent agents own the customer relationship and are looking for carrier partners they can trust to take care of their customers,” Martin said. “Unfortunately, many agents are struggling to find carriers they believe strike the right balance of competitive price while putting the interests of the customers first.”

More than 20% of agents disagree that their insurer prioritizes customers’ interests, while only 28% strongly agree. This gap matters: among agents who do not believe their insurer puts customers first, just 21% would recommend the carrier. Among those who strongly agree, 59% would recommend.

Ease of doing business also looms large. In personal lines, satisfaction was 274 points higher when carriers were described as “very easy” to work with; in commercial lines, the gap widened to 314 points. Yet more than six in ten agents say it is not “very easy” to work with their carriers.

Despite frustrations, some carriers succeed. Erie Insurance ranked highest this year for both personal (754) and commercial lines (747), with Auto-Owners Insurance and Cincinnati Insurance close behind. Even top performers, however, must better meet agents’ expectations.

Independent agents deliver most of the industry's business, yet their growing sense of being undervalued and underserved is now a tangible business risk. This leads to fewer policy placements and lower carrier recommendations.

Martin suggests the solution is not just higher commissions or better technology, but genuine respect, transparent communication, simple compensation, and strong customer alignment. Carriers who prioritize these will strengthen partnerships and retain agent loyalty. Those who do not risk losing their core business drivers.

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