While producer priorities and perceptions of how well insurers are fulfilling their needs are often alike no matter the age, gender or race of respondents, there are some significant differences carriers should be aware of–especially when it comes to the size of an agency or brokerage, a new survey conducted exclusively by Deloitte for National Underwriter demonstrates.
“If they are truly committed to growth, carriers may want to consider developing different strategies along the organizational size spectrum to connect with producers,” suggested Rick Berry, director, Deloitte Consulting LLP.
The vast majority of the 1,596 qualified producers surveyed by Deloitte's Insurance Industry Group, in partnership with NU, were white (89.3 percent), male (77.6 percent) and from the Baby Boomer generation–those age 45 to 63 (65.9 percent).
The survey base was an experienced lot, as 45.6 percent boasted between 30- and 44 years in the business, while another 34.2 percent reported serving between 15- and 29 years.
The respondents were also key decision-makers, with 62.7 percent in senior management, identifying themselves as the president, CEO or principal of their firms–84.2 percent of which are privately held.
Nearly a quarter (23.5 percent) of respondents reported working for agencies or brokerages generating over $5 million in revenue, including 9.6 percent doing $25 million or more.
Just over one-third (34.1 percent) work in firms with less than $500,000 in annual revenue, while the largest single share–42.3 percent–are at organizations between $5 million and $25 million in revenue.
The mix in business was a fairly even split between personal and commercial property and casualty lines.
A key question examined by Deloitte in crunching the survey numbers was whether there are significant differences among the respondents, depending on the size of their firm or their demographic characteristics.
Many response levels tracked very similarly across the board, but there were some intriguing distinctions revealed. For example, the survey found that in many key areas, size does matter.
o On claims issues, respondents from the biggest firms were the least happy with their carriers' performance (only 69 percent said they were satisfied or very satisfied), while the other three size categories all had satisfaction rates of around 80 percent.
o The same pattern followed on technology, with satisfaction among bigger firms at only 60 percent, compared to 74 percent for those at outfits with less than $500,000 in revenue. The other two size categories came in the middle, at around 67 percent.
o The trend was repeated on producer satisfaction with risk or loss control services offered by carriers, with only 61 percent of those at outfits generating over $25 million in revenue being pleased–lower than their colleagues at smaller firms.
o However, the pattern was reversed on two other critical areas, as the largest firms were more satisfied with pricing (87 percent) and compensation (77 percent) from carriers, compared to those in the three smaller categories.
When it comes to one of the biggest complaints cited in the survey–the lack of producer input into carrier decisions and initiatives–size once again plays a part, the survey revealed.
Whether on marketing initiatives (24 percent), product development (22 percent), technology to enable work flow (18 percent), claims (15 percent) or integration of distribution channels (9 percent), those at the biggest firms surveyed were most likely to say they were “often” solicited for input from carriers.
The differences were stark when compared to the smallest firms surveyed, where only 10 percent said they were often consulted on marketing (against 22 percent in this same size category who said they are never consulted on such matters). On product development, “often” was checked by only 6 percent of this sector, against 27 percent who said “never.”
On claims, 30 percent of the smallest firms said they are never consulted, versus only 7 percent of the $25 million-plus outfits.
Size of business also played a part in a producer's fears about the future. The bigger their firm, the less a producer is concerned about carrier direct sales, online quoting services, call centers and carrier Web sites–with the difference being quite dramatic between the biggest and smallest.
In addition, producers in personal lines are more concerned about competition from all these venues than are those in commercial lines.
Age of the producer also was a factor in the survey's trends. Returning to the critical question about producer input, those in Generation X (age 28-44) said they were often consulted by carriers, led by 22 percent on marketing initiatives, while both those older and younger than that felt left out of the loop more often.
Race played a part as well, with minority producers placing far more importance on a number of factors than did their Caucasian colleagues–including getting help from carriers in terms of financial support (78- versus 59 percent), lead generation (69- versus 48 percent), succession planning (54- versus 33 percent) and recruiting (51- versus-31 percent).
The same trend on these specific categories was evident, although to a lesser degree, when the responses of women were compared to those of men.
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