Starting in 2023, agents began reporting widespread deterioration in ease of business with many of their carriers. According to DCC data, this trend continued in 2024, with many independent agents feeling that their carriers were not holding leaders and service providers accountable for good communication and service execution within their distribution network.
DCC’s data on individual carrier performance reflects these concerns and offers detailed insights into why carriers are falling backwards.
To understand the dynamics that comprise an agent’s perception of “efficiency,” we ask agents to rate the importance of 11 different areas that can make it easier for them to write business with a carrier. For each area, agents then rate the performance of several carriers with whom they often do business. Verbatim comments give us a clear picture of where carriers excel and where they lose out on business.
Examining performance rating trends for individual carriers from 2023-2024, we found the following:
For Ease of Business performance across all factors, only 30% of carriers improved their performance in 2024. In contrast, 70% of carriers’ performance either worsened or stayed the same. This gap presents an opportunity for the few carriers that have improved their ease-of-business scores to write more new business in 2025 at the expense of weaker carriers.
Furthermore, in every individual Ease of Business factor, more carriers’ performance declined than improved.
Carriers with robust underwriting processes have a significant opportunity for strategic differentiation in 2025.
Agents tell us that Underwriting Responsiveness has the biggest impact on how likely they are to go with a carrier. In 2024, 68% of carriers experienced a decline in this key factor. Carriers with robust underwriting processes have a significant opportunity for strategic differentiation in 2025.
The industry described 2024 as a hard market, especially for property and auto lines. Consequently, most carriers also experienced declines in Underwriting Flexibility in 2024.
However, carriers that are financially positioned for growth in 2025 and possess knowledgeable and disciplined underwriting can now capitalize on the hard market. They can more easily win business from carriers that are unresponsive and lack consistent and stable underwriting. For insights on improving underwriting responsiveness while maintaining underwriting discipline, see these blog articles.
Despite the challenges in 2024, a relatively small number of carriers improved their ease of business execution. These carriers will have strategic momentum when the insurance marketplace normalizes.
If you would like detailed insights into your agents’ experiences with your organization’s service levels vis-à-vis your closest competitors, let’s talk.