This release acts as a correction for the release posted on 10/11/2023 at 9:00 AM EDT from Openly announcing: Openly's Inaugural State of the Independent Homeowners Insurance Agent Survey
Surveys 1,645 Independent HOI Agents to Identify Key Threats to the Independent Channel and How Agents are Countering
BOSTON, MA / ACCESSWIRE / October 11, 2023 / Openly, the premium homeowners insurance provider, today announced the findings of its inaugural State of the Independent Insurance Agent survey. The June 2023 survey recorded responses from 1,645 agents across 46 states to establish an understanding of the current state, and future, of the homeowners insurance landscape from the perspective of the agent. In its first year, respondents were asked to share their marketing focuses, operation details, and what they expect to be threats to the industry and their business in the next three years.
Survey demographics included agent age and agency size (by total in-force premium), which resulted in:
- Agent Age Range: 21-34 years old (17%), 35-44 years old (29%), 45-54 years old (27%), 55-64 years old (19%), and 65+ years old (8%)
- Agency Size: $0-$250K (7%), $250K-$500K (5%), $500K-$1M (8%), $1M-$2M (13%), $2M-$5M (19%), $5M-$10M (13%), $10M-$25M (8%), $25M-$50M (3%), over $50M (3%), and unsure (21%)
Agency age ranges from one year to more than 40 years in business, with one to five years, 11 to 20 years, and more than 40 years in business being the most common responses. The research also includes more details around what insurance agents are seeing across the industry's landscape, including types of additional coverage sold, in which respondents reported water backup, equipment breakdown, and flood insurance as the top three types of additional coverage sold in 2022. Interestingly, agencies aged over 40 years also indicated technology as their primary investment focus over the next 3 years, while all other respondents will be prioritizing talent.
"We are excited to share the findings of our first State of the Independent Agent survey as we continue to expand our efforts to better understand the agent environment," said Ty Harris, Co-Founder & CEO of Openly. "It is essential to hear directly from agents what they are seeing across the homeowners insurance industry, how they are combatting present threats, and what steps they are taking to improve their business. As a company that supports this demographic directly, we look forward to leveraging these insights to better serve the industry as a whole."
A key aspect of the survey, respondents identified perceived threats to the independent agent channel over the next 3 years - which include:
- 89% of those surveyed deemed weather and climate as greatly or somewhat impactful on homeowners insurance.
- 60% reported significant or very significant concern about insurance companies exiting markets.
- 41% identified the rise of Direct-to-Consumer (DTC) providers as an emerging threat.
Despite the potential threats to the insurance industry, agencies are still looking to invest in pivotal areas to grow their business over the next 3 years. The research found that, to combat these threats:
- 61% of respondents indicated they will be investing in talent
- 50% reported technology investments to be a primary focus
- 43% reported the intent to invest in marketing
To combat rate increases specifically, respondents reported using a mix of the following tactics:
- Quoting with multiple carriers
- Remarketing
- Bundling coverage
- Seeking new carriers
- Reducing coverage
In terms of new business premium, more than 1,100 (67%) respondents reported personal homeowners insurance as their leading force of new business, while 29% reported commercial lines of insurance as the leading force. More than 90% of respondents stated they do not expect a shift in their agency's line of business.
To learn more about how Openly is creating a more efficient and transparent homeowners insurance experience, visit www.openly.com. To download and view the full report, visit https://openly.com/state-of-the-independent-agent-2023.
About Openly
Openly is a remote-first premium homeowners insurance company. Its centralized platform offers comprehensive coverage, market-leading technology, and exceptional service. Founded by industry veterans in 2017, Openly is dedicated to delivering modern and transparent homeowners insurance and empowering independent agents across America. In 2023, Openly was named a Forbes America's Best Startup Employer and Inc. Best Workplace. For more information, visit Openly.com or linkedin.com/openlyllc.
Media Contact:
Catharine Rybeck
Caliber Corporate Advisers for Openly
[email protected]
SOURCE: Openly