As the world moves rapidly toward internet- and mobile-basedmeans of advertising and lead generation, the insurance industry isfollowing suit, but perhaps more slowly than other major businesscategories.

Today, only one-third of independent insurance agents in theU.S. have structured programs in-place for online lead generation,according to Quote Wizard, a digital insurance marketplacethat works with more than 8,000 insurance agents nationwide.

Quickly changing digital business landscape

Given the quickly changing digital business landscape, it's hardfor many agents to tell up from down in the world of internetmarketing. But there is a sense of urgency to get involved.

Consider this: Most millennials, or the demographic of peopleroughly aged 18 to 34 years old, don't like to talk on the phone oreven in person. But they do like to do their ownonline research and product comparisons.

Insurance agents today are at the mercy of political, economic,and/or technological challenges that have only added pressure.We're talking direct insurance growth, new claim-processing apps,industry consolidation, Google Compare, mergers and acquisitions,the Affordable Care Act, state and private insurance exchanges,floods, fires, and everything in between.

Agents must be online to stay in business

At the recent 2016 Medicare Supplement Insurance Conference,agents compared notes on how the current business landscape hasreinforced the fact that agents today must be be online to stay inbusiness.

First and foremost, a basic website is essential. It must articulatean agent's location, the types of insurance offered, and contactinformation. Not only does this help consumers, updating yourwebsite often also insures that you'll show up in online search andrate comparison results, which can lead to clicks and calls fromprospects.

Second, agents must understand that social media is a necessary evil. Your agencyshould be on Facebook and LinkedIn, because your current andprospective customers are there, as are your competitors. Instagramand Twitter?  Not as important for today's digitalconsumer. 

Third, how strategic is your Customer Relationship Management (CRM)system? As agents generate leads online and elsewhere, it isbecoming more important to track which leads results in sales andhow quickly. An up-to-date CRM also can enable agents to determinewhich channels may not be as effective.

Keep reading for details about the online tastes of today'sinsurance consumers.

Taking an active interest in your online presence and imagewill insure the vitality of your insurance business for years tocome. (Photo: iStock)

What do online consumers want?

Conventional wisdom is that millennials avoid face to faceconversations, boomers are technology-averse, and GenX/Y wantseverything in between.

However, once all of these consumers are online, they become theconsummate digital audience, thirsty for immediate answers.

Consider this: Three out of four of auto insurance shoppers useinsurer websites or lead aggregators to get rate quotes and starttheir research, according to a recent study by J.D. Power.Insurance consumers want immediate response and comparison,research, informed decisions and validation of the product in a'Back to the Future' way.

Clicks versus phone calls

In may seem counterintuitive, given all we know about the onlineconsumer, the old-fashioned phone call may be primed for a comebackamong savvy insurance agents. 

"While many customers want to shop online, they often still wantto talk to someone when they buy their insurance to make sure theyare getting the right coverage or have questions about their policyanswered," according to Greg Hoeg, vice president of U.S. insuranceoperations at J.D. Power.

At the same time, consumers often find the agents which whomthey wish converse with the help of a search engine. It followsthat insurance agents who are becoming more effective inunderstanding and leveraging search-based ads have the best chanceof capturing local consumer searches via clicks to their respectivewebsites.

What about the impact of mobile devices?

A fast-emerging area to watch is pay-per-call or "live transferleads," an emerging technology that's tied to the massive adoptionof smart phones. Yes, consumers use their mobile devices to search.But now, many consumers can will actually dial that local agentthey find online, which can result in a source of highly qualifiedleads.

So while getting a targeted click from a 'traditional' search toyour agency website is valuable, getting a phone call from aconsumer who arrived at your agency through mobile search bringsyou even closer to a sale.   

On the horizon

Google recently did away with its insurance comparison website,Google Compare. And more change is definitely coming. How do agentsanticipate and adapt to the evolving digital space? Here's how:

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  • Dedicate yourself to nailing the basics so you'll be in goodposition to capture leads from any search, comparison, orphone-based leads.
  • Stay informed, as we are on the cusp of more pronouncedinnovation and change that will continue to affect the insurancebusiness.

Taking an active interest in your online presence and image will insure thevitality of your insurance business for years to come.