Possibilities for enhanced practices

To remain viable long term, agents should therefore be disrupting their own outdated business practices and integrating many of the same tools and technologies being deployed by those looking to displace them. Consider the following possibilities:

Going 24/7: Even though most consumers of personal and small business lines appear to still prefer a human component in their insurance transactions, many have become accustomed to immediate gratification at their convenience, including nights and weekends. To satisfy such demands, agencies need to have a robust web page and mobile app with intuitive self-service options, giving customers direct access to coverage information, first notice of loss capability, and claims status, at a minimum. Having the option of contacting a live person via phone or text, like a doctor with a service to reach them in case of an emergency, might be wise to retain an agent's key competitive advantage—their customer-centricity.
Going virtual: While several Insurtechs have emerged that seek to displace agents with automated, algorithm-driven online shopping platforms, others have acknowledged facts on the ground by serving as virtual wholesalers and incorporating legacy retail producers into their business models. Joining such platforms can extend an agency's market reach among those who may want to window shop for insurance online, yet might still be convinced to opt for an expert intermediary who can get them adequate coverage at a competitive price, while providing value-added risk management advice and claims support.
Going electronic: Enabling electronic signatures, policy delivery and proof of insurance certificates can make doing business with brick and mortar agencies much more convenient than asking clients to come to the office or exchange documents over regular mail.
Getting automated: Chatbots can help agencies refer calls to the proper people or even directly handle routine queries about coverage or claims, setting or confirming appointments, or seeking preliminary information about buying or renewing policies. Automated systems can also help agents determine placement options for new or renewal business before involving a live producer to close the deal with customers.
Getting advanced analytics: Agencies can tap into big data and artificial intelligence programs to identify new prospects and cross-selling opportunities, pre-populate applications, and assess a client's coverage and risk management needs. This saves agents time and effort, and better prepares them for a face to face (or perhaps virtual) consultation with customers.

Of course, relying too heavily on these technologies may risk disconnecting agents from what differentiates them in the first place — the human connection. But as long as such tools merely supplement direct interaction with consumers, allowing agents to step up in moments that matter to provide the personal touch and assurances only they can offer, I don't see many of them going the way of milk men or buggy whip makers anytime soon.

Special Reports /

Agents buck the doomsayers, but adaptation still required

Related Stories

Recommended For You