PIA's Insurance Technology Leadership Advisory Board (the PIA IT LAB) recently created a new resource, The Agent Experience, which is a toolkit designed to assist agents in using digital technologies to strengthen and grow customer relationships. It includes a self-assessment, videos of agents' real-life experiences, tip sheets and a resource hub to help build and grow relationships online. To view this free resource, visit www.pianational.com, click Member Benefits, and select The Agent Experience under Agency Operations. While you're there, visit PIA's other member resources on digital tools including www.winningatvirtual.com, a digital toolkit prepared by PIA's carrier council, the PIA Partnership. (jozefmicic/Adboe Stock)
When reviewing the results of the 2022 Independent Insurance Agent Survey conducted by NU Property & Casualty magazine in conjunction with the National Association of Professional Insurance Agents (PIA), I felt confident that despite some vexing challenges, agents remain optimistic. After all, a can-do attitude has always been a characteristic of independent agents, along with adaptability and resilience.
And that is what I found.
However, the survey also revealed a perception that could work to the disadvantage of independent agents; skepticism that the online environment can be conducive to establishing trust with clients.
Relationship business
Independent agents rely on building relationships rooted in trust with their clients. Traditionally, that occurred through in-person interactions. But in the 2020s, the perception by agency owners that digital interaction is not well-suited to building trust with clients is not only inaccurate, it can lead to missed opportunities.
How do agents develop relationships with clients in an online world?
For roughly two years during the ongoing coronavirus crisis, insurance organizations experienced a crash course in new ways of doing business. The changes the crisis accelerated, however, were already underway.
Years ago, there were fewer options for interaction between independent agents and clients, and these interactions were simpler and focused primarily on in-person meetings and personal telephone contact.
Today, the digital strategies that businesses can use to meet customer expectations and provide a quality experience have expanded to include many additional tools such as interactive websites, geofencing, cloud-based programs, artificial intelligence and virtual assistants. The options seem almost limitless.
But you have to meet people where they want to be met. Some clients may be comfortable with more in-person contact. Others appreciate the efficiency of online transactions but still want to hear a helpful, friendly voice. Empathy and problem solving remain important, especially in times of stress. Still, many clients now prefer what an independent agency delivers best — coverage expertise, advice and personal service — in a digital format.
What customers want
It all comes down to delivering what customers want and need, in the way they want to receive it. Every touchpoint between an independent agency and its clients is part of building the client relationship. Some techniques will work better than others, depending on each client's preferences.
The pandemic accelerated a move to more business being conducted online. At the same time, growing customer expectations for digital engagement apart from the pandemic have driven more change. It's all part of the dynamic, ever-changing business landscape to which agents must adapt to be successful. Using digital technologies to communicate with prospects and customers is no longer a choice. It's an imperative.
This installment of the Independent Insurance Agent Survey reveals that the view of agents regarding building trust online is changing for the better. While the need for independent agents to build relationships has never been greater, agents should not give up on what's worked in the past. It's not subtraction, it's addition. It's about meeting your customers where they are and using digital tools for greater reach, deeper connections and more business.
Mike Becker (mbecker@pianational.org) is executive vice president and CEO of the National Association of Professional Insurance Agents, which is based in Alexandria, Va.
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