AGENCY AND CARRIER RELATIONSHIPS

By being strategic in where they place business,

candid in the feedback they provide, and thoughtful

in how they manage submissions and communication,

agents can build partnerships that are more

efficient, profitable, and sustainable.

The pressures shaping agent-carrier dynamics

Agents continue to face mounting complexity in their daily workflows, and not all carrier partners are keeping pace with agent expectations. For example:

Underwriting is a top concern. Just over a quarter of agents surveyed rated their carriers’ underwriting service as great. At the same time, 84% said underwriting responsiveness is a key factor in how carriers can earn more of their business. Delays, lack of transparency, and difficulty reaching decision-makers all impact agents’ ability to serve their clients—and influence where business ultimately goes.

Claims service can make or break the partnership. Just 23% of agents rated their carriers’ claims service as excellent, making claims another critical differentiator. Agents are very aware that a poor claims experience reflects their agency as well as the carrier. Three-quarters of respondents said that claims handling is one of the most important factors in their decision to place business.

Carriers may be missing the mark on agent engagement. Independent agents are often asked to give their time to carrier visits, promotional programs, and marketing efforts that may not deliver meaningful value to their business. While these requests are often well intentioned, they don’t always align with agency priorities.

Agents should feel empowered to be honest about what’s helpful—and what’s not. Setting clear expectations can reduce distractions and create space for more impactful support from carrier partners. Open, constructive feedback isn’t just about improving products or technologies; it’s also about how carriers engage with the agency day to day.

Technology investments don’t always align with agent priorities. Agents are clear about the tools they need from carriers, with digital rating, submission, and document delivery topping the list. In fact, 69% said digital personal lines rating tools are a must-have, while 59% prioritize digital document and policy delivery. Despite the industry’s excitement over emerging tech, agents ranked mobile apps and chatbots among the least valuable carrier investments.

Clarity on compensation matters just as much as competitive rates. Surprisingly, clear and accurate compensation statements edged out competitive commissions as the top factor for compensation. Two-thirds of agents said transparency in earnings is essential—3% more than those who prioritized higher commissions. Trust and predictability in compensation structures help agents feel secure in long-term partnerships with insurers.

Navigating the challenges

In response to these challenges, many agents are making strategic adjustments to how they work with carriers.

They’re shifting business to more responsive and better-aligned carriers. The days of spreading business across a wide array of carriers are fading. Agents increasingly prioritize ease of doing business, responsiveness, and risk appetite when deciding where to place accounts. Fast underwriting decisions and reliable communication are being treated as competitive advantages.

This tighter alignment improves communication, builds trust, and increases negotiating power when it comes to compensation and underwriting flexibility. Carriers with deeper relationships are also more likely to support niche lines and deliver faster service.

Agents are also treating technology as a standard and not as a bonus. They are not waiting for carriers to modernize. Instead, they are sending business to insurers with strong digital platforms, especially in quoting and submission. Agents don’t just appreciate carrier investments in tools that save time and reduce manual work—they expect them. For agents, digital efficiency matters more than digital novelty.

One survey respondent put it like this: “Labor is our most expensive cost in the agency, and the time to manually input all the information that is being requested today for rating is so time consuming that raters are the only real option. Carriers need to understand that independent agents are going to compare rates, so make it easy.”

Strengthening carrier partnerships

While many of the survey findings reflect opportunities for carriers, agents also have a role to play in strengthening these relationships.

Submitting complete, organized information is a powerful differentiator. Underwriters are overwhelmed. One of the simplest ways for agents to strengthen the partnership is by streamlining their own processes. Clean, complete submissions reduce back-and-forth delays and often result in faster responsiveness. This ultimately allows agents to quote, place, and close business more efficiently.

As a former broker, I saw firsthand that underwriters responded much faster when they trusted that my submissions were accurate and complete the first time. That kind of consistency goes a long way in building mutual respect—and getting deals done.

Clear feedback also helps carriers improve. Too often, agents hesitate to provide direct feedback about what’s not working. But being open about challenges gives carriers a chance to course correct. Constructive communication isn’t just helpful; it’s essential to shaping stronger partnerships.

Own the relationship

Independent agents are in a powerful position to shape the future of their carrier relationships. By being strategic in where they place business, candid in the feedback they provide, and thoughtful in how they manage submissions and communication, agents can build partnerships that are more efficient, profitable, and sustainable.

Likewise, carriers that listen to agent feedback, modernize their processes, and prioritize strong communication will be best positioned to grow through their independent channel.

Complexity, trust, and efficiency are the new differentiators. For agents, now is the time to reassess, realign, and reinforce the partnerships that matter most.

The author

Mike Erlandson manages Professional Services Partnerships at Vertafore, where he focuses on technology for agencies. He has 18-plus years of experience in both insurance and insurtech with a passion for efficiency and automation.