Products and pricing-they form the yin and the yang of an agent's value proposition, the two primary points on which insurance is sold. "Products & Pricing" make up the first of seven categories in PIA's Company Performance Survey.

Company scores. The 2009 survey found that, on average, insurance agents are better satisfied with carriers' products than their pricing. For "superior coverage," companies' scored an average of 7.6 (on a 10-point scale) besting the survey's overall average score (7.3). However, at 6.8, "competitive pricing" scored well below the survey average.

Some companies manage to excel at both, garnering plaudits like these:

• "Competitive pricing without sacrificing coverage."
• "Good rates, good products, very good retention."
• "Excellent product and coverage as well as premium rates."

Benchmark "importance" rankings. A preliminary study, the PIA Company Benchmark Survey, was done to help select 2009 performance items. Agents ranked the importance of 35 items when evaluating a company relationship. "Competitive pricing" ranked 14th, while "superior products" ranked 18th.

The Benchmark Survey also asked agents the importance of broad performance categories (as well as specific items); here, "products and pricing" rated most important of all. (When scores of individual performance items were totaled, "claims handling" items topped the priority list.)

Agent comments. PIA sorted over 6,000 agent comments from the 2009 Company Performance Survey, according to 15 subject areas. Nearly one-third (29 percent) involved either products or pricing. Price-related comments were most numerous of all. Here's the breakdown:

• Pricing comments-17 percent of total
• Product comments-12 percent of total

Comments name a company's "main strength" or an area for improvement. In the "strength" column, products appear more often than pricing (20 percent vs. 15 percent). "Improvement" tips, on the other hand, overwhelmingly call for more competitive pricing.

"Main strengths" for commercial-lines units are led by product-related comments (22 percent); just half as many "strength" comments are price-centered (11 percent). But for personal lines, "main strength" comments balance more evenly between product (20 percent) and pricing (18 percent).

When agents suggest product "improvement," they're unlikely to think about better products: Most "improvement" suggestions actually urge a company to provide broader product offerings. These were counted in a separate category ("underwriting appetite").

Pricing is another story. Overall, nearly one in five (19 percent) of "improvement" comments involve pricing. For personal-lines units, it's nearly one-third (31 percent); at commercial lines units, less than half that (14 percent).

What agents say-products. In general, agents like more and better product options ("Their endorsement line is great." "Tailor-made products." "Policy includes everything." "Variety and strength of innovative coverages."). They also appreciate company development in this area ("Product/coverages getting better and better." "Constantly updating their product.")

Some "improvement" comments involve better communication ("Communicating accurate and complete information regarding products, especially when rolling out new ones." "Clarifying some of the special coverages available but not fully explained while in the quoting process." "Marketing department [should have] list of actual products that are available. No one seems to know what you can write, or not.")

What agents say-pricing. Agent comments often are more nuanced than simply wanting the lowest possible prices-although they do need a competitive offer ("In this time when every penny counts to a customer, I find it harder to place business with [company] because of price." "We'd write a lot more business with them, but they are consistently $300 more on policies than other companies."). Comments show agents stay keenly aware of a company's pricing, down to the smallest details ("Lower the rate for water backup protection on homeowners").

Agents also appreciate price stability ("Consistent pricing" is a strength). They dislike inconsistency ("Tough on their renewal pricing but will give credits for new business") and change ("More gradual rate implementation." "It's hard to build a loyal book when they fluctuate to the extent they do.").

Companies: Your agents definitely want a heads-up if rates are changing ("Better communication with agents at renewal time regarding pricing." "The rate goes up $1,500, we get no phone call except from a very unhappy insured.")

Agents understand the power of modern pricing systems ("Company has recently embarked on a tier program for automobile, which we hope will help us increase our business.").

At the same time, agents dislike their opacity ("The way they rate now leaves nothing to say to the insured who asks why his premium went up $300; rates cannot be explained.")-as well as their effect on existing books ("We have to constantly re-market legacy personal auto because of new rating platforms.").

Agents also sometimes question the judgments that go into rating risks ("Be a little flexible on home values with the market going down.")

Analysis. Based on the sheer number of comments focused on products and pricing, plus the Benchmark results, it's safe to say these elements feature near the top of agents' priority list. When agents think about the strongest and weakest points of a specific company, the company's immediate utility as a market often is uppermost in their minds.

Pricing is a big concern in the personal-lines arena, where so much high-profile advertising remains fixated on saving money. Pricing and technology are the most-frequently cited areas for company improvement.

Product quality is often seen as a company's main strength (20 percent overall)-in fact, this is agents' most-frequently cited "strength" topic for both personal and commercial lines. Very few companies come up short in the product area-but some definitely stand out for the quality of their product offerings.-Kiehl