Personal lines carriers and their commercial lines counterparts have at least one thing in common when dealing with independent agents: It is absolutely critical for carriers to offer technology solutions that make it easy for agencies to do business.
Over the years, though, most independent agents have found that things move faster and easier on the personal lines side. But that has led to more personal lines business going to the direct carriers—eliminating agents from the equation.
Today, more focus is returning to the business of commercial lines and how carriers and agents can help each other overcome issues that challenge their business. Carriers have to deal with a soft market that forces them into difficult underwriting decisions, while agents face cost uncertainties that arise from the often laborious task of processing complicated policies.
Below are five viewpoints on the challenges faced on both sides and ideas for overcoming them.
Agents Want Less Expensive Solution
The number one request agents have made when the issue of small commercial policies comes up is to find a way to conduct the transaction in a way that's less expensive for the agents, according to Ralph Blust, EVP for Willis Commercial Network.
"[Agents] say if there was a way to do less work on the smaller business and yet still provide the level of customer service needed and expected by the client, well, that would be fantastic."
Ease of Business Critical for Carriers
At commercial lines carrier CNA, Belen Tokarski, assistant vice president of technology and agency solutions, has learned that not all agents are ready for the newest technology.
"Agents want some level of ease of doing business, so what we do is make sure we have a solution that meets the needs of any agent selling small business policies, regardless of their level of technical sophistication," she says.
Technology Is a Catch 22 for Most Carriers
If there is one point every insurance carrier is trying to accomplish these days it is to find ways to differentiate themselves from the competition. Second on the list is to find ways to be more efficient.
"Margins are slimmer in all businesses these days and everyone is looking for ways to bring more efficiency to the operation yet also have a differentiator for their brokerage partners," says Jon Siglar, vice president, chief sales & field services officer for Pacific Compensation Insurance Company.
Producers Seek Efficiencies with Technology
Brower Insurance puts a premium on technology and has traditionally spent additional funds on the technology side to help its staff be more efficient, according to Dan Driskell, a principal for Brower, a regional agency in southwest Ohio. Why?
"[Producers] are in the business of bringing in new revenue and we need a great staff behind us to bring in renewals," he says. "We find making life easier for them keeps everyone happier and streamlines some of the efficiencies."
Different Strokes for Different Agents
When agents rate different factors that affect their business, technology comes midway down the list of issues they deal with.
"I think that's a manifestation that it's different for different agents," says Nort Salz, president of consulting firm Deep Customer Connections. "All of them are thinking about what carriers can do to help them sell, but they have different processes for how they sell—some are early adopters and want to go real time, but others don't."
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