NU Online News Service, April 15, 11:47 a.m. EDT
The number of agents and brokers selling personal lines insurance is declining, as direct sales by insurers rise and companies seek to create new relationships with customers, according to PricewaterhouseCoopers (PwC).
PwC has released an annual report of existing and future industry challenges. In it, PwC says producers can still have a vital role in building the types of customer relationships necessary to retain and grow business, and insurers are devoting efforts to develop quality producers while maintaining and expanding direct channels.
“Customers are used to real-time, multimedia interaction in all aspects of their daily business and personal lives, and they expect the same convenience and accessibility from their insurance providers,” says Jamie Yoder, co-leader of PwC's Insurance Advisory. “As a result, the role of the insurance advisor is being permanently altered, and insurance providers are focused on meeting customer demands across all channels.”
Direct sales increased 41 percent—28 percent via the Internet and 13 percent by phone—in 2010.
Insurers are becoming more “consumer-centric,” but there are challenges to that, PwC says.
Therefore, insurers surveyed by PwC expect to invest more in information analytics, market infrastructure and talent recruitment.
“Insurance companies are following the lead of other industries like credit card services and packaged goods,” says Yoder. “They are focused on listening to and understanding customers and customer segments in order to create deeper and longer-lasting relationships and develop more distinctive service and product bundles.”
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
