As the personal lines market becomes increasingly competitive,making it more difficult to differentiate products, providers whocollaborate with their agents on product development and innovationare likely to prove most successful.

In short, the days of a provider simply creating a product andsending it into the field are numbered. Insurers must invite agentsto the table earlier and more often. These partnerships allowproviders to "get it right" when it comes to product development,strengthening relationships and giving agents the confidence tosell products they not only believe in, but actually helped todevelop.

Collaboration a Must

For decades, insurance companies have developed solutionsthrough research, experience and anecdotal evidence from the field.Few organizations, however, have learned how to work effectivelyhand-in-hand with agents to become fully immersed in their needsand those of their clients. The power of a provider's ability toinnovate, combined with producer insight and experience, results inproducts that offer clients what they most need and value.

Travelers recently worked closely with agents to develop a newpersonal lines auto product, Quantum Auto 2.0. With one of the keyagent concerns being price, agents were able to voice theiropinions and help develop a new rating structure, making it easierto explain price changes and promote rate stability. Ultimately,this allowed agents to attract and secure more business over time.By soliciting feedback about the current auto lines landscape,challenges agents face when selling auto insurance and suggestedenhancements to improve prior offerings, Travelers and producerswere able to develop a product that addresses common hurdles agentsface in the highly competitive auto insurance market.

Another key takeaway from this collaboration: Agents need moreflexible products that allow them to leverage different packagesand coverage when competing against price-only carriers. Part ofthe product-development process was about subscribing to the notionthat auto insurance is not just a commodity, but a flexible productthat can deliver more options to consumers. This unobstructeddialogue led to the development of a product that is both easier toexplain and easier to sell.

Strengthening Relationships

Carriers have long valued and prioritized their relationshipswith agents and brokers: After all, the strong personalrelationships they cultivate with clients make producers thelifeblood of the industry. Collaboration also creates opportunitiesfor forging even deeper relationships between providers andagents.

In a truly collaborative effort, providers gain a fullerunderstanding of agents' day-to-day concerns and producers get morethan just a peek behind the curtain. Agents who enjoy a voice inthe development of products gain a much stronger understanding ofthat product's features and value. This deeper knowledge canempower agents with increased confidence when it comes time torecommend products to clients.

Increased collaboration with an insurer also gives agents abetter understanding of the providers' solutions – beyond theproduct, from customer service and claims to best practices forclients. Agents and brokers gain confidence by knowing they'veprovided input on the things that matter.

As agents search for differentiated products and solutions forclients and insurers work to develop relevant offerings,collaborative innovation will powerfully influence the future ofmeaningful insurance solutions. Working together, providers andproducers can help clients better manage their risks and protectwhat matters most to them.

Bill Ramsden is Vice President, Field Sales Management andAgency & Field Sales Solutions for Travelers. Contact himat [email protected].