Survey: Agents Only Talk The Talk

For independent agents, technology may be key to solving the service gap, the report recommended.

The wide difference between customer and agent expectation and delivery was found in a study of service and satisfaction by Mayfield Village, Ohio-based insurer Progressive.

More than 1,100 independent agents, were contacted for the survey through the carrier's agents-only Web site, and 1,800 Progressive auto policyholders who purchased their insurance through independent agents were reached by telephone.

The groups were asked questions about three services agents provide to their personal lines customers: advice on pending policy cancellations, policy and coverage reviews at renewal, and assistance with policy forms and paperwork.

According to Progressive, the survey found that 90 percent of consumers who said they received one of these services from their agent were either extremely or somewhat satisfied with the agency.

The agency satisfaction figure dropped to 50 percent for customers who did not receive the services.

The survey also found that while agents recognize how valuable these services are to consumers, the degree to which the services are provided varies notably.

The results:

? Notification of pending policy cancellations: 94 percent of customers and 90 percent of agents believe this is a valuable service. However, only 52 percent of customers said their agent provides this service.

? Policy and coverage reviews at renewal: 96 percent of customers and almost 100 percent of agents believe this is valuable. However, only 69 percent of customers said their agent provides this service.

? Assistance with paperwork: 96 percent of customers and almost 100 percent of agents believe this is valuable. However, only 74 percent of customers said their agent provides this service.

"The personal lines insurance market is becoming more competitive, and independent agents should try to do all they can to differentiate themselves from captive agents," said Chris Garson, Progressive's agency business IT director, in a statement.

"People have busy lives and want their agent to be not only a personal insurance counselor but a fast problem solver and a provider of accurate, up-to-date information."

Progressive noted that technology can help agents and brokers overcome their struggles to provide service and differentiate themselves. They also can expect to keep their customer for a long time to come by:

? Utilizing their agency management systems' ability to access real-time policy information.

? Taking advantage of company Web sites offering agents full access to endorsements, payments, policies, billing and claims information, even e-mailing a quote directly to customers, something the company's agent Web site, ForAgentsOnly.com offers.

? Encouraging customers to go online and to perform routine service tasks, such as address changes and billing inquiries.

In response to the survey results, Madelyn Flannagan, vice president of education and research for the Independent Insurance Agents & Brokers of America, said by e-mail that providing superior customer service is critical to future sustained growth of the independent agency system.

"The most recent Agency Universe Study cited 91 percent of agencies declaring that one of their biggest keys to success is their ability to provide excellent service to all clients and community members," she said. "Best Practices agencies consistently tie their long-term success to their customer service philosophies."