Independent agents have been losing ground in the battle for personal lines market share to captive agents and direct writers, but the Independent Insurance Agents & Brokers of America will soon unleash a technology portal it feels will make producers competitive again.
Studies show the majority of buyers like to deal with an agent when purchasing insurance, but most begin their research for coverage over the Web, where direct writers and captive agents dominate searches. A recent report from Accenture says 72 percent of insurance buyers turn to the Web for carrier information while 56 percent turn to exclusive agents. That reality leaves independent agent's with a 33 percent share of the personal lines market.
Aiming to combat this reality, the IIABA formed the Trusted Choice brand in 2001 to promote the independent agency system. In a recent address to members in Washington D.C., IIABA Chairman Bob Bramlett claims the brand is successfully reaching out to potential customers through social media and has the second largest fan base following on Facebook in the insurance industry at 44,000.
Its fundraising support of the Make-A-Wish Foundation has helped with those numbers. However, says Bramlett, “Trusted Choice needs to continue to evolve in the hearts and minds of consumers.”
The next step is Project CAP (Consumer Agency Portal), which aims to optimize online technology for the benefit of independent agencies and raise their profile with consumers.
“We, as independent agents, can't collectively outspend the national direct [writers]. They spend hundreds of millions of dollars each year,” says Tom Minkler (pictured), chairman-elect of the IIABA and president of Clark-Mortenson Agency Inc. in Keene, N.H. “It is not something that we will be able to compete with in the same fashion. However, the beauty of the Internet allows us to resonate on that [search] page over time by leveraging what we already have, which is 23,000 physical locations. This is the year we begin to do that.”
Launched in late 2011, the strategy of Project CAP is two-fold, says Minkler. The first phase was the development of tools and services for independent agencies to help them become more efficient and visible in the digital world through the utilization of social media. The offerings range from an online tutorial, which is free, to experts who work with an agency to develop their online tools.
This assistance can range in price from zero to $1,000 depending on the agency's individual needs, Minkler explains.
Phase two is the June 1 launch of the online portal which will move to universal availability to all IIABA members, making them part of an online marketing machine, says Minkler. The portal will leverage the online content agencies have to offer with the growing presence of the Trusted Choice brand to establish a potent marketing presence on the Web.
The portal's aim is to put the Trusted Choice brand, and affiliated agents or agencies, at or near the top of the consumers' search and give them the choice between direct writers and independent agents. Consumers will have the ability to search for a quote or check the services a producer offers.
The kick-off will concentrate on personal lines—initially auto insurance—and homeowners soon after. Other personal lines will follow. Eventually, CAP will offer access to small commercial.
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