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Survey: 75% of consumers satisfied with insurance agents; personalized service

Three-quarters of consumers are very satisfied with the service 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.

U.S. consumers want personalized service and human interaction from their insurance providers, says the survey, which comes at a time when agent-based carriers are facing increased competition by direct channels and direct-only insurance carriers.

The study demonstrates consumers’ unwavering loyalty to their insurance agent regardless of potential savings that online channels alone can provide, and it indicates how insurance carriers are providing their agents with technologies to deliver more personalized customer services.

For example, only 15 percent of respondents said they would consider dropping their agent to save $150 annually by purchasing insurance online.

Fifty-four percent indicated no amount would make them switch.

Forty-four percent of consumers said their insurance provider is innovative as compared to other industries, and 71 percent of respondents said they will work directly with their agent for future insurance needs.

Personalized service and human interaction emerged as key factors in driving consumer loyalty with their agents. More than half (53 percent) of consumers cite personalized service as what they like best about the services offered by their insurance agent, and quality of service topped the list of the key factors in choosing an insurance provider. For example, face-time continues to play an important role in helping agents deliver quality services; 36 percent surveyed said they like to visit their agent.

“The insurance business is still very much relationship-based, and consumers are willing to pay a premium for agents that instill trust and provide ongoing advice regarding their insurance needs,” said Norbert Dick, general manager, Global Insurance Industry, IBM. “But insurers should not ignore the potential in the online channels for maintaining existing customers’ loyalty and capturing additional market segments. A combination of back office process improvements and customer experience improvements across channels like the Web, e-mail and cell phones can pay dividends in terms of repeat business and brand loyalty. And for customers who are looking at direct channels, particularly younger, emerging market segments, channel investments stand to gain new business.”

Topics Agencies