As is the case across many other industries, insurance is currently undergoing a huge period of change, driven by both evolving customer expectations and rapid technological advancements.

Part of this change is being fueled by a new generation of insurance buyers—companies and individuals that are not just more digitally savvy, but for whom faster, more seamless service is a baseline expectation. With speed and choice now key to the customer experience, agents need access to a broad range of products from multiple carriers, along with a clear understanding of each carrier’s appetite, so they can match clients to the right coverage without delay.

At the same time, the way insurance is bought and sold is evolving—and in some ways, the industry is coming full circle. A few years ago, as InsurTech started to emerge, direct-to-consumer (D2C) was perceived as the future; a belief shared by both new entrants and many traditional players. While D2C has certainly carved out a place, with many consumers having grown comfortable transacting online—especially for straightforward personal lines—and a rise in the number of D2C options, the value of agents has become increasingly crystalized.

This value has been highlighted during recent market challenges, as carriers have limited their exposure to both new business and renewals across many regions. In these moments, agents have played a critical role in helping clients navigate these limited options, shop around and find alternative solutions. There also are still plenty of scenarios where expert guidance is preferred—whether it’s a business owner navigating the nuances of a commercial policy or a consumer weighing coverage options in regions where online offerings are limited.

Alongside generational and D2C market changes, the concept of bundling is also seeing a shift that’s affecting agents. Previously, we saw customers expect a single carrier to package products like home and auto together, but now we’re seeing a rise in specialized monoline providers. For the agent, this means they’re increasingly having to build a “pseudo-bundle” experience—piecing together the best individual products across carriers to create a seamless package for the client.

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These changes, among others, are putting agents under increasing pressure to compete not only on price, speed and access but also additional value. They’re having to position themselves as a trusted one-stop-shop that can offer ongoing advice, handle policy servicing and proactively identify additional coverage needs. Failing to deliver risks losing ground to competitors that can.

And for carriers, whose distribution success still depends on agent performance, any friction in the agent’s ability to meet customer demands also poses a risk.

Pinpointing the Friction

So, what exactly is stopping agents from adapting to these new changes?

One of the biggest disconnects we’re seeing between carriers and agents right now lies in quoting and appetite alignment. Appetite is constantly changing and often, in key markets—such as highly populated areas—there is very limited availability of insurance carriers. This misalignment leaves many agencies having to quote relatively blind. They have to do lots of work up front to understand appetite, and if they don’t, quoting becomes drastically inefficient, going through the full quoting process only to be declined. This, of course, wastes time, but it can also affect trust and productivity.

Agencies, especially small to medium ones, are also finding it increasingly difficult to discover new insurance providers, such as MGAs, who can offer products that meet their customers’ needs. Not only is it hard for these agencies to get appointed with more established carriers, but keeping up with changing appetites across markets is nearly impossible. Without tech to assist, access to the right products or timely information, it’s increasingly difficult for agents to meet the needs of their customers.

Advice for Carriers

With the above challenges in mind, what can carriers do to ease some of this friction?

• Clear and early communication. From the very beginning of the relationship with agents, carriers should be clear how much business they hope to place, what kind of clientele they typically serve and what loss ratios their book of business usually carries. While building strong, long-term relationships with carriers is essential, the vast majority of agents simply want to do right by their customers, who are often members of their own community.

• Level the playing field. For agents to remain competitive and relevant in what is an increasingly digital and D2C world, carriers need to allow agents to offer the same products, with the same discounts, coverages and pricing to their customers compared to what is available online or via other distribution partnerships.

• Streamline the appointment cycle. It’s much better for the agent and also for the carrier if the appointment can be processed within no more than a few days so the carrier is still top of mind for the agent—and in some cases there is a relevant lead that is waiting for a quote.

• Embed intelligence into workflows. As well as using technology to ensure agents can easily check in and stay updated, carriers should also look for ways to embed real-time intelligence directly into the agent’s workflow. Whether it’s surfacing appetite matches, underwriting guidance, or pricing signals at the point of quote and automatically flagging when a customer’s risk profile no longer aligns with existing coverage, these capabilities allow agents to make faster, more informed decisions.

• Equip agents with marketing support. We’re living in an information-heavy market, meaning consumers are often overwhelmed with choices. Providing ready-to-use assets like bite-size videos or one-pagers will not only increase awareness of your products but help agents effectively communicate the value of the insurance products they offer.

• Offer flexible quote-and-bind options. Allow agents to quote and bind from various places: raters, partner portals, agency portals, etc.

• Make payment quickly. Remember that many agencies are, in essence, small businesses who care about their cash flow as well.

• Use data prefill tools. Reduce manual data entry by prefilling customer information where possible, helping agents work more efficiently and improve the customer experience.

• Consider agent alignment. Alongside the above process improvements, carriers also need to be thoughtful and targeted with what kind of agents they want to bring in, where and when. A well-aligned partnership is a win-win for both sides, creating stronger, more productive relationships from the start.

For carriers that choose not to modernize and strengthen their distribution strategy and agent experience, not only will their growth suffer, but there’s also a real chance of attracting the wrong kind of business, leading to adverse selection and long-term profitability challenges. When the process is inefficient or difficult, the best, most profitable business will go elsewhere, and you’ll be left with the business that can’t be placed. It’s a constant balance reducing friction for agents while keeping clear guardrails in place to ensure only the right business flows through.

A carrier’s reputation also plays a major role here. In a close-knit industry, word spreads quickly about which carriers are agent-friendly. A strong reputation, built on how much a carrier invests in technology and support that makes agents’ lives easier, often becomes a deciding factor when agents choose who to place their best business with.

Why a Mindset Shift Is Needed

With this in mind, we want to encourage carriers to treat agents as both distribution endpoints and empowered partners in the customer journey. It’s all about closing the usability gap and delivering tools that fit into how agents actually sell. If done right, the result can offer a three-way win: carriers can increase loyalty, grow submissions and differentiate in what is now a highly competitive distribution landscape; agents can be empowered to serve digital-first buyers more effectively; and customers can benefit from faster, more seamless experiences. This is why putting in the effort to identify and address any digital friction early on is so key.