"This is both an affirmation and a wake-up call for agents," he added. "Commercial lines customers want agents as experts who are backed by the efficiency of the Internet."

Input from focus groups

The research project included qualitative focus group research, involving business owners and insurance decision makers, conducted in multiple cities by research consulting firm The Pert Group, and quantitative research involving an online panel provided by Survey Sampling International, LLC (SSI), consisting of a random national sampling of 1,000 small-business owners with companies of 50 employees or fewer.

"Some studies backed by direct writers and captives had contended that buyers of small and midsize business owners policies (BOP) wanted to purchase such coverages online," said PIA Partnership Chairman John Petrucci. "We decided that a more objective picture of buyer preferences was required.

"The message is clear: The Internet is here to stay. It is not the opponent of agents," said Petrucci. "But while it can be a source for competition, it can also provide an opportunity for agents when they use it to their own advantage. Responding is about evolution, not revolution."

The changes taking place in the marketplace provide an excellent opportunity for independent agents to increase their dominance in the commercial lines market, he added, "but the one thing that is not an option for independent agents is inaction."

Detailed research results, along with agent-specific recommendations and tools developed through this research, are being provided to all members of PIA nationwide by The PIA Partnership. 

Expert advice plus personalized attention

This project is a follow-up to The PIA Partnership's "Voice of the Customer—Personal Lines," an extensive nationwide survey of personal lines insurance customers. The new study reinforced that commercial buyers want what professional insurance agents offer: expert advice and counsel, personalized attention and interaction, the ability to offer comprehensive protection to meet individual needs and excellent, "relationship-based" customer service.

Additionally, the study found that the attributes that are most important to small businesses when it comes to their insurance are those offered by independent agents, including:

• Belief in the person or company
• Having a person who understands my business
• Quick service response
• Personal attention
• Providing me with confidence that I am making the right insurance decisions

"Much has been said and written about plans by companies such as Google attempting to challenge the dominance of independent insurance agents in commercial lines," said PIA National President Richard A. Clements. "That's why we asked commercial lines customers what they want. We found they want what we provide, and that they also want us to provide more. As for competition, I say what agents have always said: 'Bring it on!'"

Check out the research findings, as well as resources for independent agents, here.

The PIA Partnership, originally established as the Company Council of Executive Officers (CCEO) in 1996, is a group of insurance companies that work collaboratively with PIA National to conduct research and develop tools and resources designed to benefit professional independent insurance agents.

Current PIA Partnership companies include: Encompass Insurance; Erie Insurance; Harleysville Insurance; Liberty Mutual Insurance; MetLife Auto & Home; Progressive Insurance; Selective Insurance Group; State Auto Group; The Central Insurance Companies; The Hanover Insurance Group; The Hartford; and The Motorists Insurance Group.