AMSUG President: Industry Must Listen To Customers, Or Risk Losing Them Orlando

While technology advances are being made in communication between agents, brokers, carriers and other parties, the insurance industry is hurting itself by failing to focus on customer needs, said the new president of the AMS Users Group.

In an interview with National Underwriter during the groups National Conference held here March 13-16, newly-elected users group president Roy C. Riley said the insurance industry is not paying enough attention to “outward facing” interactions with customers.

“Were still policy-driveninternal,” he noted.

Mr. Riley pointed out that customers access to their account information is limited and must typically be gained by the agent through the carriers Web site. “But most transactions arent done through the carrier Web site,” he said, meaning that customers must wait while agents visit the carrier sites to get whatever limited information is available to do a transaction, such as making a payment or changing coverages.

On the other hand, if customers can access their own information and complete a transaction in the same visit to the agents Web site, “theres less work for me [as an agent] and better satisfaction for the customer,” said Mr. Riley, who is CEO, CFO and information systems manager of Peel & Holland Financial Group, Benton, Ky.

“Insurance transactions are very ugly, compared with banking transactions,” he asserted. “As an industry, I dont see any focus on where the customer wants us to go.”

In addition to giving customers more online access to their account information, Mr. Riley said it might also help to accept credit cards for insurance transactions.

In discussing possible solutions to the lack of customer focus, Mr. Riley observed that, “ACT may be the best place to start to look at the industry fresh, from a customer perspective.” He suggested that carriers might also be able to “leverage” investments already made in their Web sites by making them more responsive to customer needs and wants.

“Customers want 24-hour access, and we cant do it efficiently right now,” said Mr. Riley.

By the end of his one-year term in office, Mr. Riley said he hopes the industry will increase its focus on “efficiently sharing information” with agents and customers.

“My biggest fear as an agent,” he stated, “is that if we cant figure out how to [share information more efficiently], somebody else will. Theres way too much money involved for it not to happen.”

Asked who might be the one to step in and take over the customer information process (and perhaps the customers), Mr. Riley said, “The banking industryMicrosoftwho knows?”

As for other plans for his year in office, Mr. Riley indicated that he will be doing “nothing dramatically different.” The focus, he noted, will be on education, advocacy of SEMCI (single-entry, multiple-company interface) and other agency technology issues, and services to members, including a new “e-learning” program to be rolled out over the coming year.

Overall, however, he believes that strengthening the focus on effective transactions and sharing of information with customers will be the key issue of 2003-2004.

“If at the end of my term, the industry is at least discussing and focusing on the issue, I will feel that the AMS Users Group has had some success,” he concluded.

Reproduced from National Underwriter Edition, April 14, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.

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AMSUG President: Industry Must Listen To Customers, Or Risk Losing Them

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