What is meant by carrier performance in an agency context?

Carrier performance in an agency context refers to how well an insurance carrier operates and maintains its commitments to intermediaries such as insurance agents. The focus on the frequency of business declines relates to how often a carrier decides to non-renew policies, decline new business, or pull out of certain markets. A high rate of business declines could indicate instability or risk aversion, which can be detrimental to an agency's ability to offer reliable products to clients.

The other aspects, such as quality of customer service, product range, and claims processing speed, while important, are not central to the definition of carrier performance as it pertains specifically to how well the carrier supports the agency's business through its underwriting decisions and overall market presence. Thus, the frequency of business declines directly impacts the agency's business sustainability and growth prospects, clearly aligning with the concept of carrier performance.