Paradiso agrees. "One thing that Google doesn't have on all of us is that we are local," he says.

So how can an agent out-local Google? Read on for five tips from the experts.

Redefine What 'Local' Means

"Local" is a flexible geographic space. For Paradiso and his business, that term expands beyond the agency's Stafford, Conn., office to the entire state.

"We have invested in technology that makes it easy to do business two hours away: We have a mobile app, Saturday hours, Docusign and more," he says. "If someone wants to do business with us, I don't want anything to stand in the way of that relationship being born."

Jason Cass, owner of JDC Insurance Group in Centralia, Ill., agrees.

"Whether it's 10 miles away or 60 miles away, if the agent has the product and can deliver value and a great customer experience—then that customer would argue that that person is their local agent."

Make Your Operations 24/7/365

Insurance buyers have strongly voiced their desire for an insurance channel that is convenient for them, and Google presents an efficient and convenient option.

"The challenge lies with an aging and somewhat lazy independent agent channel attempting to force its buyer to purchase in a way that's convenient to the agent," says Tom Barrett, president of SIAA MidAmerica Inc., the strategic insurance agency alliance.

So how does an agency provide around-the-clock service? Mobile apps and online quoting are two ways. Another is with a Web portal. A portal's most important element is functionality—clients need to be able to interact with the agency. It shouldn't just be a marketing tool. Functional features include those that allow self-service, such as policy changes, claims assistance and providing certificates of insurance.

Be Ready to Compete: The Time to Act is NOW

"I am puzzled why more agents didn't prepare [for Google as a source of competition]. We were all warned and saw it coming," Paradiso says. "My concern is that if agencies don't invest time, effort and resources into their teams, processes and marketing will suffer. We need to get our acts together so that my kids and their kids know and understand why an independent agent is the way to go."

At Paradiso Insurance, the agency uses an automated e-mail marketing system and a dedicated SEO consultant to get its name out to clients and prospects. The agency invests about 11% of its gross revenues back into promoting its brand.

Unsure of what an automated e-mail marketing system entails? Read "Digital marketing: A new twist on a proven method."

Be a Friend Online

"The main difference between my agency versus Google," Paradiso says, "is that my people are trained very well and use social sites such as Pinterest to find commonality with our prospects and clients."

If an insured posts a photo of his or her new car on social media, does Google "like" the photo? Can Google reply to that photo with winter safety tips, such as raising windshield wipers on a parked car during a snow storm? Despite all of Google's algorithms and data collecting, the Internet giant cannot connect with its insureds in that way—but independent agents can.

Offer an Experience—Not a Service

A Google auto policy may sound cool, but just because it's simple and quick doesn't make it attractive, NU P&C columnist Chris Amrhein wrote in his January article.

Although coverage can be bought and bound over the Internet, that doesn't mean that it should be treated as a commodity. Indeed, agents need to communicate why their value-added services and advice help prospects and insureds, Anderson says. "A Personal Auto Policy is not the same. A Geico policy or a Google policy, there are significant difference there," and it's up to the independent agent to educate his or her prospects and insureds on those differences.

From branding, to advertising, to prospecting, to communication, to quoting, to closing a proposal, to retention and finally to cross-selling, the experience that a client goes through is both social and digital, Cass says. "Customer service is what the client expects—it's what they [initially] pay you for. But customer experience—that's why they stay."