Survey Finds U.S. Likes Insurance Agents' Human Touch

A consumer poll has found Americans prefer personalized service and human interaction from their insurance agents.

Armonk, N.Y.-based IBM released the results of a survey today of 1,000 consumers that found three-quarters of consumers are very satisfied with the service provided by their agents and remain committed to working with them in the future.

IBM said the study demonstrates consumers' unwavering loyalty to their insurance agent regardless of potential savings that online channels alone can provide. The company said it also indicates how insurance carriers are providing their agents with innovative technologies to deliver more personalized customer services.

For example, only 15 percent of respondents said they would consider dropping their agent to save $150 annually by purchasing insurance online. Fifty-four percent indicated no amount would make them switch.

Forty-four percent of consumers said their insurance provider is innovative as compared to other industries, and 71 percent of respondents said they will work directly with their agent for future insurance needs.

Personalized service and human interaction emerged as key factors in driving consumer loyalty with their agents. Fifty-three percent of consumers cite personalized service as what they like best about the services offered by their insurance agent.

Quality of service topped the list of the key factors in choosing an insurance provider. For example, 36 percent surveyed said they like to visit their agent, indicating face-time continues to play an important role in helping agents deliver quality services.

"The insurance business is still very much relationship-based, and consumers are willing to pay a premium for agents that instill trust and provide ongoing advice regarding their insurance needs," said Norbert Dick, general manager, Global Insurance Industry, IBM. "But insurers should not ignore the potential in the online channels for maintaining existing customers' loyalty and capturing additional market segments."

In a separate survey of captive agents, the study found that carrier reputation and amount of carrier support were the main drivers for their satisfaction.

Agents also reported a high degree of satisfaction with their work environment and optimism about growing their customer base. For example, over 60 percent of agents polled said they have seen an increase in new business in the last 12 months.

Cross selling and customer retention have become critical success factors for captive agents and will be important to growing their premium share. The survey said captive agents reported that 42 percent of their new business came from cross selling, and 56 percent surveyed said their primary focus was on managing existing customers.