Trusted Partners Win

AI is rapidly becoming a critical conduit to key policy shopping, research, and account management decisions, especially when it comes to auto and home insurance buyers.

Nearly one-third (29%) of auto and home insurance customers are using artificial intelligence tools to research products and coverage, service their accounts, understand coverage before submitting a claim, or shop for a quote or new policy.

AI-provided guidance is also having an impact on decision-making. More than one-third (37%) of customers who used AI to research products or coverage options changed their policy based on the information they received. Among those who used AI to shop for a new policy, 42% purchased a policy as a result.

But, despite increased use of AI in the insurance shopping process and direct-to-consumer marketing efforts by carriers, independent insurance agents still write 62% of all property and casualty policies in the United States. Agents are the critical link in the industry ecosystem, according to recent studies by JD Power (2026 U.S. Independent Agent Satisfaction Study and the AI Insurance Experience Study).

The agent study, now in its ninth year, was developed in conjunction with the Independent Insurance Agents & Brokers of America (IIABA). It evaluates the evolving role of independent agents in P&C insurance distribution, general business outlook, management strategy, and overall satisfaction with personal lines and commercial lines insurers in the United States.

“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,” said Craig Martin, executive director, global insurance intelligence at JD Power.

A few additional findings in the study:

• When independent agents view carriers as trusted partners, they are more likely to recommend that carrier within the next six months (+43 percentage points) and more likely to write more policies with that carrier (+37 percentage points). Still, just 48% of agents view their carriers as partners. The remaining 29% are viewed as providers and 18% are viewed as vendors.
• The two relationship attributes most associated with carriers that agents view as partners are trustworthiness (76%) and innovation (50%). Carriers that can be trusted to deliver on their promises and continue to offer innovative, creative solutions are those that independent agents are most likely to give more business. By contrast, being the lowest cost carrier (17%) and being seen as established (37%) are less commonly associated with true partner status.

Thank you to this issue’s sponsor, Liberty Mutual.