Up until about 15 years ago, independent insurance agents could do far more than they are able to do now.
Back then, in the era of manual rating, when a customer came into the agency we could take out the manual, jot down and add up the premium, bind the policy on the spot and send the customer home with an ID card.
The agent was in control. But since the advent of predictive modeling, we've lost our ability to bind. Now, we must exit our agency platform and access multiple carrier platforms.
Most agencies around the country represent perhaps a dozen carriers. Once we leave our own systems, the sales process slows down. Workflow becomes less efficient. Different carriers have different questions. Direct comparisons are more difficult. As a result, the agent can lose control of the process, prompting the customer to walk. We can lose the sale.
Wouldn't it be great if we could bind coverage in real time, without the need to bridge to the carrier systems? We could go to one screen on our systems and see full comparisons with premiums and live buttons to bind.
It turns out that we can. The technology to do it already exists.
PIA National took leadership role
The topic of a "buy button" for independent agents has been discussed in our industry for many years, with no consensus being reached.
PIA National decided to take a leadership role in initiating a renewed discussion of this issue by calling an industry-wide meeting, which was held on Jan. 21, 2016, at the headquarters of ACORD in Pearl River, N.Y.
PIA's intention was to foster discussion and provide a forum for all views, with the perspective of agents at the center of the conversation. Part of the impetus was recent PIA Partnership research showing that commercial lines customers who prefer doing business with independent agents nevertheless want their agents to be fully capable digitally.
More than 50 agents, carriers and vendors attended the session. Attendees heard from three panels: a technology panel, an agent panel and wrap-up panel consisting of carrier, user group and vendor representatives.
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Concerns addressed
Prior to the meeting, serious concerns had been expressed by some agents that enabling customers to bind on the agent's website — in the absence of the agent — would undermine the agent value proposition. As discussions occurred during the meeting and subsequently, these concerns were addressed.
"At first, I was skeptical, but now I am convinced this is needed," said Jim Mansfield, an agency principal from Lawrenceburg, Ind. "The more that an agent can fulfill the desires and expectations of the client, the better the chances for success. The technology already exists to empower agents to have a far more robust capacity to serve the client by providing a full range of choices in real time. We need to take advantage of this."
The "buy button" will empower agents to bind coverage in real time for prospects or clients that call on the phone, walk into the agency and meet with the producer, in addition to visiting online. This concept will also apply to mobile technology for agents to use when meeting with prospects or clients offsite, giving them the same real-time binding ability whether they are in or out of the office.
Opportunity for agents
Enabling customers to bind coverage on an agent's website creates an opportunity for agents to reach a segment of business that independent agents currently don't maximize. Any policy that could be bound by a customer would be owned by the agency and subject to filtering of forms and limits, all set in advance by the agent. This concept would be used in conjunction with a comparative rater. Follow-up contact from the agency to customers who have bound a policy on the agency's website will enable upselling and cross-selling, within hours.
"Adopting and implementing the Buy (bind) Button concept is a business decision that will be transformative for technology-enabled independent agents," said Kitty Ambers, CEO of NetVU, the Network of Vertafore Users Inc. "It will take open-mindedness and a commitment to embracing updated point-of-sale, new business and renewal workflows, but the ultimate competitive advantage will result in measurable growth for the entire independent agent distribution channel.
"Let's let the technology work so professional independent insurance agents can thrive as advisors to consumers," she added.
After several months of discussions, PIA National adopted a policy position supporting and defining the PIA Buy Button.
Independent agents cannot fear technology; we need to embrace it in a manner that helps us achieve our goals.
After much study and deliberation, PIA has concluded that agents should have this option. Thanks to technology, independent insurance agents have the ability to take back the real time binding process and use it to increase sales. This will benefit our agencies as well as our carrier partners with increased profitability.
Robert W. Hansen, Jr., LUTCF, CPIA, of Omaha, Nebraska, is president of the National Association of Professional Insurance Agents (PIA). Opinions expressed in this article are the author's own.
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