Independent agents are still a force to be reckoned with in the property and casualty sector, as customers overwhelmingly prefer to do business with an agent. Accenture's recent survey of U.S. property and casualty customers confirms this trend, despite growing interest in digital and other “direct” experiences available to the personal lines customer. A substantial majority of these customers prefer working with an independent agent because of the expertise they provide, as well as the agent's ability to help them compare multiple brands and find the best value.

Clearly, the strong value proposition of the independent agent—access to advice, product range, carrier choice, and localized personal service—is still very compelling to customers. Yet, without substantial attention to improving the customer experience, independent agents are vulnerable to distribution advances in both the direct and exclusive agency channels.

This is not an easy task. The agency market is highly fragmented, largely local and is made up of companies run by small business entrepreneurs. As a result, the industry generally can suffer from a lack of skill, scale, scope and access to capital. Carriers with a significant independent agency channel, however, can enhance the effectiveness of their independent agent partners by pursuing two key strategies: First, to become a preferred carrier across a larger number of agencies, and, second, to build a high-performance agency network that thrives on the carrier's strengths.