Satisfying Agents Good for Business

Agent satisfaction can have a major impact on policy growth for an insurance company according to a new study from J.D. Power and Associates. It found that as agent satisfaction increases, the likelihood of agents increasing their premium business with an insurer also rises. In 2009, nearly 70 percent of agents with satisfaction scores averaging more than 800 points on a 1,000 point scale indicate they tend to increase business with the insurance company. In contrast, only 28 percent of agents with scores averaging 600 points or less indicate the same. So what makes for a satisfied agent? Interestingly J.D. Powers found that compensation is not the primary driver of agent satisfaction. “Insurers that provide helpful and knowledgeable business contacts and provide a variety of policy offerings help to better meet the needs of consumers, which leads to greater levels of satisfaction among agents,† said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates in a press release. The most important factors contributing to agent satisfaction are: key carrier contacts (32 percent); policy offering (23 percent); claims (16 percent); technology (13 percent); price (10 percent); and compensation (5 percent). The 2009 Insurance Agency Satisfaction Study is based on responses from 1,589 insurance agents evaluating more than 10 insurance companies across the industry. Check out I.I.I. information on evolving distribution channels.  

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