First Connect 2025 State of the Industry Report
An Industry at an Inflection Point
The agency distribution channel is undergoing a massive transformation. It’s a moment defined not by recession or crisis, but by a strategic convergence between the needs of independent agents and the investment priorities of forward-thinking carriers.
At First Connect, our unique position as a central marketplace allows us to see both sides of this equation. Our 2025 State of the Industry Report, drawing insights from 344 independent agencies and 32 carrier partners across our marketplace, reveals a clear path forward: success belongs to those who embrace strategic, technology-enabled partnerships.
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Here are the three critical takeaways that are defining the future of insurance distribution:
Agents Demand Digital Speed and Clarity
Independent agents are adapting to modern customer expectations, but they need carrier support to close the competitive gap with direct-to-consumer channels. The agent data reveals two critical pain points:
- The Speed Imperative: A staggering 81% of agents report increased customer expectations for speed, with a majority expecting same-day quotes and policy issuance. Agents are overwhelmingly prioritizing digital transformation solutions like instant, bindable quotes and online binding capabilities (50% of all improvement requests).
- The Clarity Challenge: 86% of agents report challenges with product availability, and 71% struggle to understand carrier appetites, leading to high quote decline rates. Agents are losing time and business due to a lack of transparent, real-time communication.
The message is clear: Agents are ready to compete digitally, but they need their carrier partners to provide the technological infrastructure and operational clarity to make it happen.
Carriers Are Responding with Strategic Investments
The good news is that the carriers we surveyed aren’t just hearing these challenges, they’re actively building the solutions. Our carrier survey revealed an industry with strong economic resilience and the financial capacity for strategic investment.
Forward-thinking carriers are stepping up to become true partners:
- Real-Time Transparency: 56% of carriers now provide real-time appetite updates as changes occur, directly addressing the agent clarity challenge and improving submission quality.
- Operational Velocity: 75% of carriers are completing agent appointments within one week, and 35% are prioritizing technology investments focused specifically on operational efficiency. This includes automated underwriting guidance and streamlined application portals.
- Proactive Support: 80% of carriers are utilizing proactive methods like live training webinars, emails, and dedicated onboarding managers to ensure agent success.
The Convergence: Blending Tech Efficiency with Human Expertise
What emerges from this data is not a story of competition, but one of convergence. The technology solutions agents are asking for are precisely what innovative carriers are building.
The future of insurance distribution is not about choosing between a relationship-based model and a digital model; it’s about seamlessly blending them.
The Partnership Advantage is simple:
- Agents who align with technology-forward carriers gain competitive advantages that direct channels cannot match, delivering both digital speed and personalized service.
- Carriers who invest in integrated technology and transparent communication receive better-aligned submissions, lower operational costs, and build fierce agent loyalty.
The path forward for the entire industry is about moving beyond traditional transactional relationships and embracing a new model where technology amplifies, rather than replaces, the invaluable human element of the independent agent.
Download the Full Report
Download the full First Connect 2025 State of the Industry Report now for in-depth data on market dynamics, strategic priorities, and the full roadmap for the Partnership Advantage.
