Carriers: Invite Your Agents to the Table Early and Often

As the personal lines market becomes increasingly competitive, making it more difficult to differentiate products, providers who collaborate with their agents on product development and innovation are likely to prove most successful.

In short, the days of a provider simply creating a product and sending it into the field are numbered. Insurers must invite agents to the table earlier and more often. These partnerships allow providers to "get it right" when it comes to product development, strengthening relationships and giving agents the confidence to sell products they not only believe in, but actually helped to develop.

Collaboration a Must

For decades, insurance companies have developed solutions through research, experience and anecdotal evidence from the field. Few organizations, however, have learned how to work effectively hand-in-hand with agents to become fully immersed in their needs and those of their clients. The power of a provider's ability to innovate, combined with producer insight and experience, results in products that offer clients what they most need and value.

Travelers recently worked closely with agents to develop a new personal lines auto product, Quantum Auto 2.0. With one of the key agent concerns being price, agents were able to voice their opinions and help develop a new rating structure, making it easier to explain price changes and promote rate stability. Ultimately, this allowed agents to attract and secure more business over time. By soliciting feedback about the current auto lines landscape, challenges agents face when selling auto insurance and suggested enhancements to improve prior offerings, Travelers and producers were able to develop a product that addresses common hurdles agents face in the highly competitive auto insurance market.

Another key takeaway from this collaboration: Agents need more flexible products that allow them to leverage different packages and coverage when competing against price-only carriers. Part of the product-development process was about subscribing to the notion that auto insurance is not just a commodity, but a flexible product that can deliver more options to consumers. This unobstructed dialogue led to the development of a product that is both easier to explain and easier to sell.

Strengthening Relationships

Carriers have long valued and prioritized their relationships with agents and brokers: After all, the strong personal relationships they cultivate with clients make producers the lifeblood of the industry. Collaboration also creates opportunities for forging even deeper relationships between providers and agents.

In a truly collaborative effort, providers gain a fuller understanding of agents' day-to-day concerns and producers get more than just a peek behind the curtain. Agents who enjoy a voice in the development of products gain a much stronger understanding of that product's features and value. This deeper knowledge can empower agents with increased confidence when it comes time to recommend products to clients.

Increased collaboration with an insurer also gives agents a better understanding of the providers' solutions – beyond the product, from customer service and claims to best practices for clients. Agents and brokers gain confidence by knowing they've provided input on the things that matter.

As agents search for differentiated products and solutions for clients and insurers work to develop relevant offerings, collaborative innovation will powerfully influence the future of meaningful insurance solutions. Working together, providers and producers can help clients better manage their risks and protect what matters most to them.

Bill Ramsden is Vice President, Field Sales Management and Agency & Field Sales Solutions for Travelers. Contact him at bramsden@travelers.com.