Submission Friction Surpasses Price as Top Factor for Agents in 2026

In the ever-evolving landscape of the insurance industry, a surprising trend has emerged: submission friction has overtaken product pricing as the primary influence guiding independent agents in their choice of carriers. According to the latest 2026 Insurance Agency-Carrier Connectivity Trends Survey conducted by Applied Systems’ Ivans, a staggering 90% of agents reported decreasing their business with carriers specifically due to the challenges encountered during the submission process. This shift signifies a fundamental change in how agents evaluate their relationships with carriers, placing emphasis on the ease of operational processes over traditional metrics like price.

The survey highlights that re-keying risk data into multiple carrier portals is the most significant pain point for agents, affecting 74% of those surveyed. As the insurance industry becomes increasingly digital, the necessity for streamlined submission processes has never been more critical. Agents are now expressing a strong desire for improved technology that simplifies these interactions, with commercial submission automation identified as the top capability they seek from carriers, cited by 79% of respondents.

The Shift from Price to Process

The findings from the 2026 survey indicate a seismic shift in priorities among insurance agents. Historically, product offerings and competitive pricing played pivotal roles in carrier selection, but agents are now prioritizing the submission experience. More than three-quarters of agents (76%) stated that their digital submission and policy servicing experiences hold greater importance than the commissions they earn. This is a significant departure from past trends where financial incentives dominated decision-making.

What Agents Want

The survey outlines specific aspects of the digital experience that agents desire:

• Easy quoting and submissions: Cited by 86% of agents as a crucial factor.
• Speed to bind and issue: 75% of agents want quicker processes.
• Real-time updates: 83% of agents express a preference for carriers that offer real-time appetite and quoting capabilities within their management systems.

This shift in focus underscores the evolving nature of the insurance market, where operational efficiency can directly impact an agent's ability to serve clients effectively.

The Commercial Lines Challenge

Interestingly, the findings reveal that agencies concentrating on commercial lines face a more pronounced struggle with submission friction compared to those focused on personal lines. Commercial-heavy agencies reported a 70% rate of re-keying data, significantly higher than the 62% rate for personal lines agencies. Furthermore, commercial lines agents are more reliant on email communications—49%—as opposed to dedicated submission capture software, which is used by only 7% of agents.

This discrepancy suggests that commercial submissions are inherently more complex and that the existing technological solutions offered by carriers are inadequate. As a result, agents are compelled to resort to manual processes that not only consume time but also increase the likelihood of errors. Such inefficiencies could threaten the viability of these agencies in a competitive market.

The Cost of Underinvestment in Technology

Michael Streit, president of Applied Systems Carrier, emphasized the implications of these findings, noting that the survey validates the technology investments being made to enhance the experiences that matter most to agents. The core message for carriers and Managing General Agents (MGAs) is clear: submission technology has transitioned from a luxury to a necessity. Underinvestment in commercial submission automation can lead to a tangible loss of business as agents seek partnerships that alleviate their operational burdens.

This year's findings represent a continuation of trends observed in previous surveys. In 2025, 72% of agents expressed a desire for greater automation in commercial submissions. The 2023 survey already indicated that nearly 73% of agencies often lost track of submissions due to inadequate connectivity tools. The 2026 survey marks a definitive tipping point where submission friction is now recognized as a leading factor influencing business placements, rather than merely an ongoing agent frustration.

The Future of Agent-Carrier Relationships

As the insurance market continues to evolve, the implications of these survey results are far-reaching. Carriers still relying on outdated email-based or portal-heavy processes for commercial submissions should take note: the friction agents experience is now a decisive factor in their business decisions. The challenge for carriers is integrating technology that not only meets the current demands of agents but also anticipates future needs.

Going forward, carriers must prioritize investments in submission automation and real-time data capabilities to stay competitive. The growing reliance on technology means that agents expect seamless integration between their management systems and carrier platforms, enabling them to focus on what they do best: serving clients and closing deals.

Key Takeaways

• Submission friction is the leading factor: 90% of agents reduced business with carriers due to submission challenges.
• Commercial lines face greater complexity: Agencies report higher re-keying rates than personal lines.
• Technology investments are critical: Carriers must enhance submission automation capabilities to attract agents.
• Agent priorities have shifted: Digital experiences now outweigh commission considerations.

Frequently Asked Questions

Why is submission friction such a critical issue for agents?

Submission friction has become a significant concern for agents because it directly impacts their efficiency and ability to serve clients. The manual re-keying of risk data not only takes time but also increases the risk of errors, which can lead to lost business and dissatisfied clients. As the industry becomes more competitive, agents are prioritizing carriers that streamline these processes to enhance their productivity and client satisfaction.

How can carriers improve their submission processes?

Carriers can improve their submission processes by investing in technology that automates data entry and integration with agents’ management systems. This includes adopting real-time quoting capabilities, enhancing user interfaces for easier navigation, and providing dedicated submission software. By addressing these areas, carriers can significantly reduce submission friction and improve their relationships with agents.

What are the implications of agents prioritizing submission speed over commissions?

The shift in agent priorities suggests that carriers may need to rethink their compensation structures and service models. If agents are increasingly valuing the ease of doing business over commission rates, carriers that fail to adapt may find themselves losing out on business. Emphasizing operational efficiency and seamless interactions may become essential for attracting and retaining agents.

Will this trend continue in the future?

Given the consistency of the survey findings over the past several years, it is likely that this trend will continue. As technology evolves and agents become more accustomed to efficient processes, the expectation for streamlined submissions will only increase. Carriers that embrace this change and invest in innovative solutions will be better positioned to thrive in the competitive insurance landscape.