NEW YORK — While technology has made it inarguably easier for consumers to purchase policies direct online from an insurer, one insurance executive says he is “doubling down on agents,” giving them increased underwriting and claims authority.
In a keynote presentation at the 23rd annual Executive Conference held earlier this month, Terrence Cavanaugh, the president & CEO of Erie Insurance, said he remains a firm proponent of the independent-agency system. “The multichannel approach can get confusing and is less effective,” he said.
In Cavanaugh's experience, “brick-and-mortar agencies—real people, real places—provide greater customer satisfaction. Consumers gravitate to compassionate, competent professionals.” The proof that this reliance on independents works for Erie is in the numbers: a 92 percent personal lines retention rate, which the insurer characterizes as “the envy of the industry.”
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