For independent insurance agents, optimizing customer-facing processes is a top priority. This focus makes sense, as the insurance business relies heavily on building and maintaining strong relationships with clients. System downtime during quoting is a common frustration for agents, often pushing them to place business with carriers that provide reliable, seamless new-business tools. Agents who understand each carrier’s strengths and strategic focus will be better equipped to match clients with the right providers.
Agency Priorities When Selecting a Carrier
According to a 2021 Deloitte survey of 300 independent insurance agents, agencies have four pain priorities when selecting a carrier, listed in order of preference:
- New business
- Servicing
- Claims
- Compensation
Essentially, agents want to spend as little time as possible on administrative tasks (claims and compensation) so they can maximize the time spent on attracting new clients and providing excellent customer service. However, the processes of setting up new clients and serving them have to be efficient.
When it comes to new business, agents are looking for easy-to-use quoting platforms and simple digital tools. They have absolutely zero tolerance for system downtime when quoting. Many will move business to another carrier if quoting systems are unreliable.
In the category of servicing, agents value having self-service tools. They like being able to receive payments and issue billing statements while helping their clients. If the servicing of a carrier is unreliable or challenging to use, they’re more likely to switch to another carrier with a better user experience.
Claims support is lower on agents’ priority lists. Within this area, agents are most concerned about being able to easily reach a carrier’s claims agents. They simply need claim handling assistance in walking customers through the claim inquiries process.
Agents are not as concerned about the compensation process. All they’re really looking for is accurate and timely compensation for their clients. Carriers looking to strengthen relationships with agents should emphasize robust quoting systems and self-service tools.
Understand What Sets Your Carriers Apart
With all the shifts in the market —changing economic conditions, ever changing client needs, and new ways of selling—it’s more important than ever for insurance carriers to get clear on what sets them apart. While there are many ways they can stand out, Deloitte found that most fall within seven main strategies or archetypes; those that:
- Lead with product personalization and flexibility
- Lead with a streamlined customer experience
- Provide white glove customer and claims service
- Offer the best price/coverage ratio
- Endeavor to be the preferred agent carrier
- Provide a “one-stop shop” for protection services
- Target a niche customer need
Companies that lead with product personalization and flexibility are keep on usage-based insurance and focus on telematics for auto insurance. They also specialize in smart home devices and the internet of things (IoT). These carriers cater to clients who prefer a customized experience that allows them to pay according to their habits.
Some carriers prioritize the agents they work with, making a point to deliver a seamless, user-friendly agent portal and a top-tier servicing experience. By focusing on what agents need to succeed– quick access to information, efficient quoting tools, and top notch customer support — they strive to be the go-to carrier.
Other archetypes serve customers based on their priorities, such as budget-friendliness, efficiency, and luxury service. Some even target a specific niche like those who live in the Midwest or who tend to get in fender benders. If agents get to know which carriers follow which strategy, they’ll be better prepared to find the best carrier for each client.
Final Thoughts
For independent insurance agents, selecting a carrier with efficient, reliable customer-facing tools is essential. Agents want systems that reduce downtime and simplify quoting and service tasks, allowing them to focus on building client relationships and growing their business. As carriers differentiate themselves in response to changing market demands, understanding these distinctions helps agents find the best carrier fit for each client, setting everyone up for success.