Agents and brokers! Can't live with them, can't live without them! That sums up the reaction of at least one carrier to the news that producers think insurers can do a better job communicating and partnering with them, as well as delivering on their obligations in terms of policies and claims.
To be fair, a very healthy dialogue and exchange of ideas took place at a recent gathering hosted by Deloitte, our partner in last fall's Producer Satisfaction Survey (see NU Nov. 9, 2009, at http://bit.ly/3FqjhO), where the results and their implications were discussed.
But after I moderated a panel of three national brokers and two high-profile independent agents, who laid out problems and opportunities in the producer-carrier relationship, one company executive wondered aloud whether the complaints merely reflected "the nature of the beast," suggesting that no matter what carriers did, their distribution force would never be satisfied. Others echoed that sentiment in chats during the breaks.
If any carriers out there are tempted to agree with this cynical, self-defeating point of view, I would strongly suggest you change your attitude in a hurry or risk becoming irrelevant.
This same sentiment is brilliantly parodied in an ad for satellite TV, portraying the management team of a rival cable firm concluding that what they need to do is get rid of customers with complaints, and sign up new ones who don't gripe as often.
That is not the answer. The proper response is to address agent and broker concerns head on—not only for their mutual benefit, but for the sake of policyholders.
For one, you can start by thinking of your producers as your customers, not just as cogs in your distribution system. Since independent agents and brokers are free to place business elsewhere, it's not a good idea to ignore their constructive criticism.
If you do, you risk losing them—and their books of business—to competitors who seize the moment to raise their game, improving communication and service.
My producer panelists were anything but shy about telling the heavyweight carriers in the room exactly where they thought the industry was coming up short. (I am not identifying anyone by name or company, as those were the ground rules of participating. This encouraged a frank exchange of views, without fear of being directly quoted.)
Among the issues they raised:
• The ongoing failure of commercial lines carriers to deliver policies in a timely fashion, error-free. Some complained that it can still take months to get a completed policy into an insured's hands.
• The lack of communication between underwriting and claims. One producer said adjusters often don't seem to be aware of what risks the agent and underwriter agreed would be covered, suggesting the two departments should train together and work more closely in tandem.
• While often surveyed by carriers about various issues, producers said they rarely if ever hear back about what actions, if any, were being taken in response to such feedback.
I am not the Dr. Phil of insurance, but I believe carriers need to be a lot more attentive to keep their producers satisfied.
Consider carefully that our survey found 43 percent of producers looking to add carriers, while 37 percent want to consolidate the number of companies they represent.
Either way, a game of musical chairs has been set in motion, and there won't be enough seats to go around. Do you want to be the one left standing?
(P.S. This terrific image was created by a fellow blogger (not about insurance, but hugging) at smaher88@wordpress.com. Awesome!)
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.