Not on the Same Page

Business owners and consumers are rethinking their finances and insurance needs due to the current economic uncertainty. However, new research suggests insurance customers and their agents are not always on the same page. There could be gaps between what agents and their customers think and want.

If that’s the case, insurance agents face some challenges when helping customers, according to a report from Nationwide Insurance. At the same time as they face these new obstacles, agents have a “compelling opportunity to serve as a knowledgeable resource for current and prospective customers to strengthen and grow their portfolio or business,” the report says. Nationwide identifies four main themes in its study:

• A perception gap: There are gaps between agents and customers when it comes to perception of service levels.
• Customers want more than just property and casualty support from agents.
• Understanding policy coverage and price are shared challenges across all audiences.
• The economy is a concern, and customers are looking to agents for guidance.

Perception Gap. The study found a perception gap in the value agents believe they are bringing to their customers. Agents are confident they are meeting the needs of their customers, yet some business owners and consumers have a different perspective. The study showed that 95% of agents believe they are always there when their clients need them but just 79% of customers felt the same. Some 94% of agents reported they are regularly checking in with their customers to make sure their policy fits their needs. But only 69% of customers reported sufficient check-ins from their agent.

Wants. The research identified areas where agents can go above and beyond traditional insurance guidance. While most customers seek counsel on conventional insurance, some business owners are looking for help on succession planning, disaster recovery and employee benefits. General P/C customers are asking agents about retirement and banking as well.

Coverage: The research identified two consistent challenges across those surveyed — understanding policy coverage and finding the best price. The study found 46% of small business owners, 71% of mid-market business owners and 47% of consumers said it is a challenge to understand what is and what is not covered in their policy. Similarly, 55% of agents say they struggle with educating clients on the coverage they need and 46% of agents say providing the level of service customers demand is a challenge.

Economy. Over half of agents think their clients feel uncomfortable talking about economic uncertainty. However, more than half of business owners and consumers feel like their agent was prepared to have these discussions.

Nationwide commissioned Edelman Intelligence to conduct a 20-minute quantitative online survey among a sample of 2,600 U.S. independent insurance agents, small business owners and mid-market business owners.

Topics Agencies