Independent insurance agencies continue to prioritize digital connectivity when choosing carriers and managing general agents (MGAs), according to the 2024 “Agency Digital Technology Adoption Trends" report from Ivans®.

When choosing carriers to work with, agents listed the quality of product offerings as the most important factor, followed by great customer service and ease of business enabled by technology. Commissions ranked after those three factors.

The top reasons agencies cite for giving more business to specific carriers are the ability to quote the fastest and the ability to connect to the agency management system (AMS). Also important to agents are the carrier's ability to provide indications with the least number of questions; whether the carrier could provide quoting, binding and issuing within the quoting system; and commissions.

The report found that agencies want greater access to carrier appetites, with 87% of agents saying they would write more business with specific carriers if they provided real-time appetite and quoting within an AMS to make it easier to find markets. Further, 3 in 4 agencies said they often lose opportunities because they cannot find a market to quote and half of agents say they spend 30 minutes or more a day searching for markets for commercial insurance risks, with 12% spending over an hour.

Meanwhile, three-quarters of carriers want to appoint new agencies and strengthen partnerships. Carriers want to connect in person, saying that attending industry trade shows and events is their No. 1 method for finding new agencies to appoint. Additionally, agency visits are up by 22% year over year.

Carriers want to explore new technology to help agencies with commercial risks. Eighty-five percent say they would invest in tech to receive more complete commercial submissions. Driving this is the finding that, on average, carriers decline 27% of small commercial submissions and 36% of more complex risks.

The state of agent-carrier connectivity offers some opportunities to align digital priorities, the report says. For example, while 55% of agents say they use carrier portals to quote commercial lines—up 5% from last year—only 32% actually prefer to do so.

Also, policy download tools are top of agencies' connectivity wish lists. Sixty percent of agents want nonstandard lines to be supported by download, with 47% wanting cyber to be supported by download and 40% wanting surety. Respondents who download personal lines policies save 1.73 hours per employee, and those who download commercial lines policies save 1.67 hours per employee. 

Meanwhile, excess & surplus business has risen over the past year, with 48% of agents reporting an increase in using E&S firms and 51% of carriers now saying that they have an E&S division. When working with E&S suppliers, 84% of agents want connectivity on par with traditional markets.

“Our data continues to show that while agents and carriers are not aligned on technology adoption today, both sides will collectively grow as they further invest in digital connectivity," said Reid Holzworth, CEO of Ivans. “By embracing automation and quoting technology, carriers and MGAs can finally close the gap between their need to expand distribution and agent demand for simpler digital workflows."

Both agents and carriers are seeking better ways to access data. The vast majority—95%—of carriers say they use data analytics tools as part of their business. Fifty-four percent of carriers say they pull third-party data to help quote new or renewal business in middle-market commercial, with 49% saying the same for personal lines and 46% for small commercial.

“By embracing technology to fuel this connectivity while focusing on those personal relationships, we can make our vision for the future of connectivity a reality," Holzworth said.

AnneMarie McPherson Spears is IA news editor.