Agents Struggle to Find Capacity, Meet Customer Timing Expectations: Survey

A new property/casualty insurance industry survey report reveals some of the key challenges that independent agents are facing, including providing quotes within customers’ expected time frames—or finding insurance capacity at all in some areas.

Almost nine-out-of-10 agents surveyed by First Connect, or 86%, reported of “challenges with product availability in their area as carriers adjust their market strategies,” according to First Connect’s 2025 State of the Industry Survey report.

First Connect is a digital marketplace that gives agents access to over 130 carriers across home, auto, commercial, and life from a single platform. The 344 agents surveyed for the report are all First Connect agencies. First Connect also surveyed 32 of its carrier partners for the report.

One page of the report displays a map of the United States highlighting over a dozen states where agents are seeking more carrier options for homeowners, commercial auto, and specialty lines placements. States included are California in the West, and New York and Ohio on the other side of the nation. The rest of the problem states are in the South, extending from Texas, Oklahoma, Arkansas and Louisiana eastward to the Atlantic coast from Virginia down to Florida. (Mississippi was the only state in this last region not highlighted on the map).

“The market access challenge affecting 86% of agents creates enormous opportunities for carriers who can provide consistent capacity and clear appetite communication,” the report states.

Still, only about one-third of agents said market access had the biggest impact on their business.

The survey report also reveals that 71% of agents struggle to understand carrier appetites. This problem translated into quote-decline rates between 10-50% for 64% of the agent respondents.

“Improved appetite transparency could significantly reduce the quote decline rates many agents experience, directly improving writing opportunities and premium growth for both parties,” the report says.

Agent also struggle to meet customers expectations. Eighty-one percent of the agents surveyed said customers expectations for speedy quotes have increased, with 70% saying they are challenge to deliver quotes and policies in the time frames customers expect. Same-day quoting and policy issuance is what many expect, according to 59% of the agents surveyed, who said that more than half their customers expect same-day delivery.

“The carriers who close this speed gap first are positioning their agent partners to compete effectively against direct-to-consumer channels while maintaining relationship advantages,” First Connect said in a media statement.

What Carriers Are Doing

On the carrier side, First Connect published the results of its survey of 32 underwriting companies in the same report, including MGAs/MGUs (47%), regional carriers (26%), national carriers (25%), and specialty carriers (19%) answering questions about distribution strategies, technology investments, and market approaches.

Among the findings:

• About one-third, 32% of carriers surveyed, said they maintain consistent market presence rather than retreating from challenging markets, while 27% employ selective underwriting with adjusted pricing and invest in predictive modeling for smarter risk selection.
• More than half—56%—are currently providing real-time appetite updates as changes occur.
• Less than one-quarter lack a consistent schedule to provide appetite updates.

Investments in “communication and efficiency are enabling partnership-based carriers to capture market share by making their agent partners more competitive and productive,” First Connect said in a media statement about the report.

Still, less than 40% of carriers (38%) have implemented automated underwriting tools and just 19% offer real-time appetite indicators. And only about one-third (35%) are making efficiency-focused technology investments rather than relying primarily on premium increases to grow business.

Economic and market factors are not impacting carriers’ financial wherewithal to make strategic distribution investments. In fact, three-quarters of the carrier respondents reported that concerns about a recession are having “low to no impact” on growth plans. In addition, almost the same percentage—72%—said claim costs are having “low to no impact,” with only 13% experience high impact.

“Forward-thinking carriers” are, in fact, continuing to make some investments aimed at strengthening agent-carrier partnerships. Among those highlighted in the report:

• 60% of carriers surveyed now deploy live training webinars and dedicated onboarding managers to ensure agents understand their products and appetites from Day 1.
• 65% of carriers complete agent appointments within one week, with half processing new partnerships within just one to three days.

A Meeting of the Minds

“What this data reveals is an industry where the most successful participants are building true partnerships rather than traditional vendor relationships,” said Aviad Pinkovezky, chief executive officer of First Connect in a media statement. “The carriers investing in transparency, high-touch onboarding, and operational excellence are creating mutual competitive advantages with their agent partners.”

The report on the dual-perspective analysis refers several times to the convergence between what agents need and what forward-thinking carriers are building.

Focusing on agency insights on what needs improvement, the report says that 50% of agents’ improvement requests center on digital transformation. These agents “prioritize online binding capabilities, instant quote generation with automated data prefill, and streamlined application processes to better serve clients who now expect same-day service,” the report states. Such requests align with the activities of the 35% of carriers who are making efficiency-focused technology investments and the 38% already providing automated underwriting guidance.

Topics Trends Agencies