Some interesting findings from this Openly survey which collated the feedback from agents active in the homeowners insurance market in the USA. It’s a time of change in property insurance as some brands decide to exit from things like wildfire risk, or restrict payouts to commercial business in high crime urban areas. For those unaware of the shoplifting situation in some US cities, it is worth noting that up to $950 of goods may be stolen without any Police attendance. That liberal interpretation of property ownership may yet embolden those who see occupation or damage of private homes as “legit” or “reparations,” both terms which have used when shops have been looted.
On the upside, many US agents are positive and investing the future, hiring and training new talent. Even if some underwriters exit the homeowner market, at least in certain areas, the US is a big enough, and diverse property market where opportunity is always knocking at the door. Here’s the word;
Openly, the premium homeowners insurance provider, today announced the findings of its inaugural State of the Independent Insurance Agent survey. The June 2023 survey recorded responses from 1,645 agents across 46 states to establish an understanding of the current state, and future, of the homeowners insurance landscape from the perspective of the agent. In its first year, respondents were asked to share their marketing focuses, operation details, and what they expect to be threats to the industry and their business in the next three years.
Survey demographics included agent age and agency size (by total in-force premium), which resulted in:
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Agent Age Range: 21-34 years old (17%), 35-44 years old (29%), 45-54 years old (27%), 55-64 years old (19%), and 65+ years old (8%)
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Agency Size: $0-$250K (7%), $250K-$500K (5%), $500K-$1M (8%), $1M-$2M (13%), $2M-$5M (19%), $5M-$10M (13%), $10M-$25M (8%), $25M-$50M (3%), over $50M (3%), and unsure (21%)
Agency age ranges from one year to more than 40 years in business, with one to five years, 11 to 20 years, and more than 40 years in business being the most common responses. The research also includes more details around what insurance agents are seeing across the industry’s landscape, including types of additional coverage sold, in which respondents reported water backup, equipment breakdown, and flood insurance as the top three types of additional coverage sold in 2022. Interestingly, agencies aged over 40 years also indicated technology as their primary investment focus over the next 3 years, while all other respondents will be prioritizing talent.
“We are excited to share the findings of our first State of the Independent Agent survey as we continue to expand our efforts to better understand the agent environment,” said Ty Harris, Co-Founder & CEO of Openly. “It is essential to hear directly from agents what they are seeing across the homeowners insurance industry, how they are combatting present threats, and what steps they are taking to improve their business. As a company that supports this demographic directly, we look forward to leveraging these insights to better serve the industry as a whole.”
WEATHER EVENTS ON THE RADAR
A key aspect of the survey, respondents identified perceived threats to the independent agent channel over the next 3 years – which include:
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89% of those surveyed deemed weather and climate as greatly or somewhat impactful on homeowners insurance.
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60% reported significant or very significant concern about insurance companies exiting markets.
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41% identified the rise of Direct-to-Consumer (DTC) providers as an emerging threat.
GROWTH AREAS?
Despite the potential threats to the insurance industry, agencies are still looking to invest in pivotal areas to grow their business over the next 3 years. The research found that, to combat these threats:
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61% of respondents indicated they will be investing in talent
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50% reported technology investments to be a primary focus
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43% reported the intent to invest in marketing
FIGHTING PREMIUM INFLATION
To combat rate increases specifically, respondents reported using a mix of the following tactics:
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Quoting with multiple carriers
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Remarketing
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Bundling coverage
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Seeking new carriers
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Reducing coverage
In terms of new business premium, more than 1,100 (67%) respondents reported personal homeowners insurance as their leading force of new business, while 29% reported commercial lines of insurance as the leading force. More than 90% of respondents stated they do not expect a shift in their agency’s line of business.
To learn more about how Openly is creating a more efficient and transparent homeowners insurance experience, visit www.openly.com. To download and view the full report, visit https://openly.com/state-of-the-independent-agent-2023.
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