Whether they’re helping people secure their homes, wealth, businesses or cars, independent insurance agents have a huge selection of policy carriers to choose from. Independent agents write 61% of all property and casualty policies in the United States. Yet, close to half of the commercial and personal agents polled recently report they don’t feel well supported by the insurers, and roughly a quarter of both groups feel undervalued as partners.
For most carriers, selling through independent agents is the primary distribution engine. That engine is fueled by relationships. But stats show those relationships can stand to use an injection of energy through better support and impactful recognition. Making stronger connections is especially critical as agents are under pressure due to consumer expectations for speed, price, and digital convenience.
The carriers who assume loyalty will hold on their own are already losing ground, whether they realize it or not. The brands who concentrate on curating bonds that add value to a partnership will always shoot ahead.
Insurance Marketplace Consumer Behavior Is Changing
Consumer behavior has shifted. According to a 2025 U.S. Insurance Digital Experience Study, 47% of insurance policy buyers now purchase through digital channels, compared to 35% through agents. However, only 15% want a fully digital experience, while 48% want digital first with human access when needed.
Insurance shopping activity remains at historic highs. LexisNexis reports that 46.5% of auto policies were researched online before being purchased in the past 12 months. Another report shows 42% of shoppers switched carriers within 18 months.
When policyholders look at the options in the market, they often start with their own agent. Where that conversation goes depends entirely on which carriers have earned that agent’s advocacy. An agent who has earned the trust of a customer will only recommend carriers who provide the agency with support, partnership, and efficiency; All hallmarks of a strong B2B relationship.
Insurance Carriers Need to Look at Recent Survey Data
A 2025 U.S. Independent Agent Satisfaction Study analyzing nearly 7,000 agent evaluations across personal and commercial lines reveal a significant gap between what agents need and what carriers deliver:
- 44% of personal lines agents say carriers are NOT meeting their foundational needs
- 43% of commercial lines agents report the same as above
The statistics also show relevant reasons why carriers need to focus attention on showing agents they have value.
- 25% of personal lines agents feel personally undervalued by carrier partners
- 22% of commercial lines agents echo the above sentiment
- Undervalued agents are 4 – 7 times more likely to reduce business with a carrier
Finally, ease of working with a carrier can play a huge role in their satisfaction.
- 61% of all agents say it is NOT “very easy” to work with their carriers
- Agent satisfaction jumps 274 to 314 points (on a 1,000-point scale) when a carrier is “very easy” to work with
A multi-hundred-point jump signals that a fundamentally different relationship can be a great opportunity for carriers to foster. Carriers who remove drag in quoting time, underwriting responsiveness and policy service can relieve friction points. Carriers who make personal connections with independent agencies can weather friction better while increasing long-term loyalty.
One key to building stronger relationships between insurers and agents is to create a “one team” sentiment, which is something B2B incentives deliver well.
Why Incentive Programs Work in the Insurance Sector
Selling insurance takes a lot of time and energy, especially when looking at product lines that are deemed optional, like life insurance policies. Adding to the difficulty of life insurance sales, is the uncomfortable mental hill that consumers climb when thinking about their own mortality. It can feel overwhelming emotionally and financially.
One of our clients in the insurance sector runs an incentive program specifically for this product type. Between 2015 and 2025 they saw a 36% increase in median new life commissions and a double-digit percent increase in new life policies issued. National averages for both are less than 5%. Why does our client see so much more success? The group travel incentives they plan recognize the sacrifices these agents make within their own lives to make sure their clients’ are protected. That repeated message of being valued cannot be underestimated.
Agents who qualify get quality time in an amazing location with a guest, other top performers and the carrier’s executive team. As new agents qualify, they comment on the wealth of experience the incentive experience allows them to glean from other top performers. The motivation to earn year after year compounds with the number of friendships forged on each program. Agents also express appreciation for how valued the carrier makes them feel: A partnership yes, but even better, like they’re part of a family.
Investing in Middle Performers is a High Reward Prospect
Recognizing top producers is a no-brainer, but it can be an incomplete strategy, especially when looking at engaging more of an audience, rather than less. Speaking in insurance terms, top agents are not the risk. The real risk, and thus a high payoff reward, sits in the middle.
Agents who are building their books have to decide which carriers get priority. It’s this group of agents who tend to receive little engagement beyond base commission rates. And to be clear, commission is not a great motivator. Every carrier pays it. It’s an expected transaction. It does not change behavior or create interaction.
We suspect it’s this group of agents in the middle – not burning up the sales but not falling off the edge either – who are giving most of the unsatisfied ratings to carriers. Insurers who show them a reason to be loyal can quite easily jump ahead of the pack.
When industry data shows the insurance workforce skews older, and roughly half are expected to retire by 2028, the real winners among the carriers will be the ones who diversify their agent engagement strategies now, especially with this group just under the top performers.
Incentive Programs for Support Staff Compound Results
Another forgotten, but important group to look at engaging, is the team that supports the agency principal. Customer Service Reps and administration staff help generate quotes, manage client interactions, and determine which carrier options to consider early in the sales process. CSRs make up roughly half of all agency employees and can be key to customer retention.
Finally, a carrier should be looking at how best to motivate their own support staff to help mitigate any drag an agent might experience. This point of contact person can also be a cheerleader for the incentive program with the agents they work with. This internal incentive can track touchpoints with agents, measure KPIs to ensure efficiencies and reward those who are driving the program goals.
One strategy to recognize and motivate the middle performers and support teams is to look at tiered rewards. Combining a points program with a more exclusive travel program gives carriers the opportunity to recognize all the people who make decisions that benefit their bottom line. Rule structures that reward at goal but also give a path to earn even more at percentages over goal, set up valuable behavior changes. This is also a great way to start a relationship that has the potential to turn into long-term partnerships, since today’s support staff could be tomorrow’s top performing agents. Internally, offering individual and team rewards, even giving one or two of the high achievers a spot on a travel program can influence behavior change that amplifies amazing customer service.
Finding an Incentive Program Strategic Partner
Agent distribution remains powerful. The advice, trust, and local presence agents provide cannot be replicated digitally. But that advantage only matters when carriers make it easy and rewarding for agents to do their best work.
At Motivation Excellence, we have more than 40 years’ experience helping businesses build engagement strategies that recognize the influence of distribution channel partners. By recognizing producers and CSRs, we help carriers move beyond compensation and toward true behavior change, shaping agent preference and driving measurable growth across the distribution network. We are happy to have a free strategy session to discuss the unique goals and opportunities you have to grow your insurance business.
