AMELIA, Ohio--(BUSINESS WIRE)--American Modern Insurance Group, Inc., a leading specialty insurance organization and a Munich Re company, today issued a report on key issues shaping the personal lines Property & Casualty marketplace based on results of a recent survey of independent insurance agents across the United States.
American Modern’s 2023 Agent Perspectives Report reveals agents’ views on a variety of topics, including consumer insurance demand, generational differences, and talent acquisition.
Agents are generally bullish about the market for specialty insurance over the next five years, with coverage for rental properties and manufactured homes widely seen as growth opportunities: 70% of agents expect consumer demand for renters’ insurance to increase, and 55% expect demand for mobile home insurance coverage to increase over the next five years. Demand for insurance coverage for collector vehicles and watercraft is expected by most to hold steady.
“This study uncovers valuable insights from experienced independent insurance agents who are on the frontlines of our industry,” said Andreas Kleiner, President and Chief Executive Officer, American Modern. “Their perspectives highlight important factors shaping the personal lines Property & Casualty marketplace, including technology, data security, generational change, and the economy.”
Other key findings:
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Generational differences. Four out of five agents see generational differences in the insurance purchasing behavior of their clients.
- Younger clients are perceived to have more concern about climate change, somewhat higher risk tolerance and much greater interest in new technologies.
- Older clients are perceived to have higher financial literacy, higher willingness to plan ahead and a greater commitment to home ownership.
- Agents are about evenly divided on whether these generational differences will persist or whether their younger clients will "become their parents" as they age.
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Impact of technology on agency business. There is a clear hierarchy in the perceived importance of specific technology issues for the future of the insurance agency business.
- Five out of six agents rated data security/privacy as the most important issue.
- The Internet of things or “IoT” (including “smart home” devices, appliances and sensors) was seen as the #2 issue, with three out of five agents rating it as highly important.
- The business impact of direct-to-consumer platforms, which can impact the role of the agents, was rated highly important by half of agents.
- Artificial Intelligence (AI) is considered highly important by about one in three agents.
- Roughly three in four agents expect AI to be disruptive to the industry over the next five years.
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Data security and privacy. The need to protect against multiple potential drivers of costs and risks – compliance, phishing and other security breaches, and ransomware attacks – was rated as highly important to most agents.
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Recession concerns. Agents’ greatest concern about a potential recession is that it would make consumers more price sensitive to premiums.
- A majority is also concerned that consumers might go without insurance or purchase fewer insurable assets.
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Half of agents surveyed are concerned that a recession could lead to a rise in fraudulent claims.
- Talent recruitment. The top employment challenge for agents is recruiting employees. Rising compensation demands are also seen by a plurality as a major challenge. Employee resistance to working in person is not perceived to be a widespread problem in the sector.
About the study
The findings are drawn from American Modern’s Agent Perspectives Report. A total of 240 independent insurance agents in the United States were surveyed over a 10-day period in August 2023.
About American Modern Insurance Group®
American Modern® is a widely recognized specialty insurance leader that delivers products and services for residential property—such as manufactured homes and specialty dwellings—and for consumers in the recreational market, including owners of boats, personal watercraft, classic cars, motorcycles, ATVs, and snowmobiles. The company is headquartered in Amelia, Ohio, and is part of Munich Re Group. For more information, visit www.amig.com.
