The results are in and they bear repeating. Three-quarters of consumers are very satisfied with the services provided by their insurance agents and remain committed to working with them in the future, according to a new survey of 1,000 American consumers commissioned by IBM.
The study confirmed that U.S. consumers want personalized service and human interaction from their insurance providers. The IBM survey targeted captive agents, however the same can be said for customers of independent agents.
The critical difference is people.
Once again, the assumption that consumers care more about price than service was dealt a blow. Only 15 percent of respondents said they would consider dropping their agent to save $150 by buying insurance online. A sizable 54 percent of the respondents indicated that no amount would make them switch.
Pity the online providers. They can spit out all the discount prices they want, but they cannot match the customer experience that an insurance agency with real people provides. Buyers may comparison shop online, but they prefer to buy from a human being.
As Jeff Wodicka, chairman and CEO of Casswood Insurance agency and national program director of Dynamics of Selling, said at the recent IBA West Young Brokers & Agents Conference, there’s no comparison in the service provided by an independent agent versus a direct provider. Carriers like Geico “have no relationship with anyone,” he said. “Geico can’t risk manage the account. It can’t provide appropriate coverage.”
That’s not to say that technology is not useful or that it has to detract from personal service. On the contrary, the survey suggested that the technologies being used by agents and their carriers help to deliver more personalized customer service. The use of customer analytics to better target products is among the key drivers in agent and customer satisfaction.
More than half (53 percent) of consumers cited personalized service as what they like best about their insurance agent. And, quality of service topped the list of key factors in choosing an insurance provider. For example, face-time continued to play an important role in helping agents deliver quality services; 36 percent of survey respondents said they like to visit their agent.
Carriers that use agents, whether captive or independent, appear to face increased competition for high-performing agents. Because agents wield great influence over the customer-carrier relationship, and many customers still place high value on that relationship, managing agent productivity and retention becomes critical, according to the IBM study.
really like me!”
Insurance agents have been reminded that not only are they turning in an award-winning performance for their customers, but that their customers like them — a lot.
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