Independent insurance agents continue to account for 62% of property and casualty (P&C) insurance policies written in the United States, despite growing use of artificial intelligence in insurance shopping and carriers’ direct-to-consumer marketing efforts. Yet fewer than half of agents regard their insurers as business partners, according to the JD Power’sstudy.
The study found that trust and innovation have become more important to insurer-agent relationships than competitive pricing or a carrier’s established market position.
Insurers viewed as partners are considerably more likely to receive additional business and recommendations from independent agents.
Key highlights
- Independent agents write 62% of US property and casualty insurance, but only 48% regard their insurers as trusted business partners.
- AI adoption among independent insurance agents has reached 67%, rising to 73% among Gen Y and Gen Z agents, compared with 34% among Boomers.
- Personal lines carrier satisfaction increased 3 points to 667, while commercial lines satisfaction declined 16 points to 669, according to JD Power.
Now in its 9th year, the study was developed with the Independent Insurance Agents & Brokers of America (IIABA). It examines the role of independent agents in P&C distribution, their business outlook and management strategies, and satisfaction with personal and commercial lines insurers.
Insurance has always been a relationship-driven business, and that convention still holds today in the age of digital engagement and AI-powered analytics, but the value equation for those relationships is now based on a sense of collaboration and innovation, more than competitive pricing or longevity.
Craig Martin, executive director, global insurance intelligence at JD Power
Independent agents want to work with carriers that understand their business, value them as agents and care about their mutual success, and those are the ones they are most likely to recommend and with whom they will write the most policies.
Only 48% of independent agents view insurers as partners
The study found that 48% of independent agents consider their carriers partners, while 29% regard them as providers and 18% as vendors. These distinctions are closely associated with agents’ willingness to recommend insurers and place additional policies with them.
Agents who view an insurer as a trusted partner are 43 percentage points more likely to recommend that carrier within the following six months. They are also 37 percentage points more likely to write additional policies with that insurer.
Trustworthiness is the attribute most frequently associated with partner status, cited by 76% of agents. Innovation follows at 50%, indicating the importance agents place on carriers that deliver on their commitments and provide creative solutions to business needs.
Traditional competitive characteristics are less closely associated with strong partnerships. Being an established insurer is cited by 37% of agents, while offering the lowest prices is identified by just 17%.
Independent insurance agent relationships with carriers
| Relationship metric | result |
|---|---|
| Agents viewing carriers as trusted partners | 48% |
| Agents viewing carriers as providers | 29% |
| Agents viewing carriers as vendors | 18% |
| Trustworthiness associated with partner status | 76% |
| Innovation associated with partner status | 50% |
| Established market position associated with partner status | 37% |
| Lowest pricing associated with partner status | 17% |
| Increased likelihood of recommending a carrier viewed as a partner | +43 pp |
| Increased likelihood of writing more policies with a carrier viewed as a partner | +37 pp |
The findings indicate that carriers seeking to strengthen independent distribution relationships need to demonstrate reliability and a willingness to develop solutions that support agents’ businesses.
For every 100 men using generative AI, only 78 women use the technology, according to research from Harvard Business School. The difference raises concerns about unequal access to AI tools, workplace opportunities and participation in decisions affecting how artificial intelligence is developed and deployed.
AI adoption continues across the United States. According to AI’s State of AI report, 61% of Americans expect to maintain or increase their use of artificial intelligence over the next 12 months.
Yet broader adoption doesn’t guarantee equal participation, especially when access to training, managerial support and professional opportunities differs between groups.
AI adoption reaches 67% among independent insurance agents
Artificial intelligence is becoming a common part of independent agents’ working practices, with 67% reporting that they use AI to support their activities.
AI adoption varies substantially by generation. Among Gen Y and Gen Z agents, 73% use AI, compared with 34% of Boomers. ChatGPT, Gemini and Copilot are the most commonly used AI tools identified in the study.
The adoption figures show that independent agents are incorporating AI into their work even as their relationships with insurers continue to depend heavily on trust and collaboration (see how AI adoption exposes insurance gaps in digital health).
AI adoption among independent insurance agents
| Agent category | AI adoption rate |
|---|---|
| All independent insurance agents | 67% |
| Gen Y and Gen Z agents | 73% |
| Baby Boomer agents | 34% |
For carriers, the findings place innovation alongside relationship management as a factor associated with agents’ willingness to recommend insurers and increase policy placements.
Insurance AI adoption exposes verification gap, study finds. Insurers are automating claims and underwriting faster than their verification systems are developing, according to new research commissioned by Clearspeed. The study found a widening gap between AI adoption and insurers’ ability to validate information used in automated decisions. Researchers examined how insurers handle evidence as AI takes on more decisions, customer interactions and workflow handoffs.
The research covered 76 public filings from 49 insurers and reinsurers alongside 31 insurance studies. Researchers also conducted 16 interviews with claims and underwriting executives at insurance companies in the US and UK.
Insurers are increasingly automating evidence reviews and customer interactions as generative AI makes manipulated information easier to produce. Photos and documents now require greater scrutiny, and synthetic voices or identities create another source of fraud exposure.
Technology has brought sweeping change to the insurance industry, forcing providers to consider how they can more quickly and effectively deliver services to their customers. Modern technology and tools have changed the game for the insurance industry and more specifically, for the producer channel (see 10 Key Technology Strategies for Insurance Companies).
While the agent/broker/producer channel is challenged by many different forms of distribution available to carriers today (for example, direct- to-consumer and embedded), it remains a significant portion of P&C insurance sales.
Agents recognize that insurance products are complex, and the consequences of policyholders choosing the wrong product can result in their looking elsewhere for a different solution.
The right technology allows agents to offer diverse products delivered in a multi-channel way, and automation that eliminates much of their manual and repetitive work. Without this technology, they are simply unable to effectively retain and renew business.
Personal lines satisfaction improves as commercial lines decline
Independent agents reported diverging satisfaction trends between personal and commercial P&C insurers in 2026. Overall satisfaction with personal lines carriers increased 3 points year over year to 667 on JD Power’s 1,000-point scale.
The improvement was driven primarily by gains in product competitiveness and business support. Commercial lines carrier satisfaction moved in the opposite direction, falling 16 points to 669.
Unlike the personal lines segment, where improvements were concentrated in specific areas, commercial lines insurers experienced declining satisfaction across all six dimensions measured by the study.
The results leave commercial lines carriers with a slightly higher overall satisfaction score than personal lines insurers, although their year-over-year performance was considerably weaker.
Independent agent satisfaction with personal and commercial lines insurers
| Insurance segment | Satisfaction score | Annual change |
|---|---|---|
| Personal lines | 667 | +3 points |
| Commercial lines | 669 | -16 points |
Traditional problems Life Insurance industry for decades – such as earnings sensitivity to external factors and opaque risks will remain. More recently, fundamental changes in industry structure have created significant competitive pressure (see 16 Most Common Life Insurance Myths). Specifically, the emergence of private capital–backed platforms has changed the game in new-product development, where such platforms have become leaders in several retail and institutional categories.
Life insurance leaders who take a deliberate, unbundled approach to their business will outperform in the decade ahead. Making this transition will not be easy, but failing to act will only result in further challenges.
According to McKensey Report, US life insurers also face drastic changes in other parts of the life insurance value chain. In general account asset management, a significant spread between top- and bottom-quartile performers has emerged as poorer performers struggle with dynamic asset allocation as well as investment performance within each allocation.
Top-rated P&C insurance carriers for independent agent satisfaction
| Rank | Personal lines insurer | Score | Commercial lines insurer | Score |
|---|---|---|---|---|
| 1 | Auto-Owners Insurance | 720 | The Hartford | 706 |
| 2 | Erie Insurance | 709 | Travelers | 704 |
| 3 | Liberty Mutual | 683 | Chubb | 694 |
The JD Power U.S. Independent Agent Satisfaction Study evaluates insurers across six dimensions: business support, compensation, ease of doing business, operational support, product competitiveness and servicing of clients.
The 2026 study was based on 4,355 evaluations of personal and commercial lines insurers with which independent agents had placed policies during the preceding 12 months. Fieldwork was conducted from May through July 2026.
What percentage of US property and casualty insurance policies are written by independent agents?
Independent insurance agents write 62% of all property and casualty insurance policies in the United States. According to JD Power, they remain a major distribution channel despite increased use of AI in insurance shopping and insurers’ direct-to-consumer marketing efforts.
What do independent insurance agents value most in their relationships with carriers?
Trustworthiness and innovation are the attributes most commonly associated with strong carrier partnerships. JD Power found that 76% of agents associate trustworthiness with partner status, compared with 50% for innovation. Competitive pricing and an established market position are less frequently associated with these relationships.
How does carrier trust influence insurance agents’ business decisions?
Independent agents who consider an insurer a trusted partner are 43 percentage points more likely to recommend that carrier within the next six months and 37 percentage points more likely to place additional policies with it. Nevertheless, only 48% of agents view their carriers as partners.
How many independent insurance agents use artificial intelligence?
According to the JD Power 2026 U.S. Independent Agent Satisfaction Study, 67% of independent agents use AI to support their work. Adoption reaches 73% among Gen Y and Gen Z agents, compared with 34% among Baby Boomers. ChatGPT, Gemini and Copilot are the most commonly used tools.
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AUTHOR: Peter Sonner – Lead Tech Editor at Beinsure
