Insurance agents, brokers as Digital Age solutions advisors
Technology enhancements and evolving expectations are two of the drivers accelerating changes in the agent-broker relationship with clients.
Technology improvements have accelerated the pace and heightened expectations in just about every aspect of consumer life, from shopping to ordering dinner online. Increasingly, consumers also now use the internet to research insurance policy options. For example, insurance clients now have, with just a few clicks on a keyboard or a tap of a cell phone app, the ability to check policy options, monitor claims and receive reimbursements.
Technology enhancements and evolving expectations are two of the drivers accelerating changes in the agent-broker relationship with their clients.
A recent survey from Chubb,”Winning the New Client Journey,” finds that 53% of consumers have shopped online for insurance in the past 12 months, and 61% are likely to do so in the future.
Successful individuals and families are the most likely to browse home insurance offerings online, with 63% and 73% reporting that they have or plan to do so, respectively.
Today’s insurance customer paradox
What is the paradox? Because of today’s busy pace of life, clients now often demand access to everything on a 24/7 basis. They want it faster, cheaper and easier.
But they also expect agents and brokers to be well-informed, trusted advisors with insurance solutions that address their complex needs. The more simple transactional business of the past has evolved into a multi-dimensional relationship spanning personal, digital and social connections.
That’s the paradox: Addressing the complex needs of financially successful clients isn’t easy. It probably isn’t fast. And it certainly can’t happen with a cookie-cutter product.
While clients have the ability to conduct an initial search online, in the end, they still need agents and brokers to navigate the nuances of product offerings and develop customized solutions.
Almost 70% of survey respondents said there were advantages to working with agents and brokers as part of the insurance shopping process. They appreciate having:
- Access to advice;
- Access to an individual; and
- Saving time
Changing our mindset
Agents and brokers must now embrace new ways to approach their business model. That model has evolved from a simple product-information provider to an informed and trusted advisor; a professional with the ability to differentiate between various product nuances and customize advice to each client’s assets and financial security.
Consider this: According to the Chubb survey, 69% of successful individuals and their families are most likely to browse home insurance offerings online. This means that agents and brokers may no longer be the initial provider of home insurance information.
However, when clients call with their findings, agents and brokers have the opportunity to set themselves apart as the trusted advisor by taking a client’s primary set of online research, differentiating all the options, and demonstrating how intend to meet that prospect’s specific needs.
Quality beats price, every time
Clients value quality. It’s an investment in their financial future.
Eighty percent of survey respondents said that agents and brokers should prioritize getting it right rather over matching the lowest price, or even offering a lower price. To that end, agents and brokers should probe deeper into the lives of financially successful clients, especially where one’s lifestyle may affect coverage options and future financial exposures.
This should come as welcomed news for insurance professionals: Clients and prospects are interested and in need of more tailored guidance and not merely an execution on a transaction.
One size does not fit all. Brokers can differentiate themselves by helping clients redefine value in the terms they understand and posing questions around specific needs and expectations.
The agent, broker online presence
Although clients value an advisory relationship, because of access to online information, they will, in most cases, search information through a myriad of digital channels.
With that as the backdrop, agents and brokers need to be mindful of how those same clients view agents and brokers (literally and figuratively) online. Agents and brokers should look at their digital footprint and ask themselves the following questions:
- When was the last time the website was updated?
- Is it interactive?
- Can clients download materials?
- How does the site compare with competitors?
- Is the value proposition clear?
- Do social media channels provide helpful tips to clients and prospects?
- Are materials being refreshed on a regular basis? Clients will notice stale information.
A digital strategy should complement an agent or broker’s traditional feet-on-the-ground strategy. In fact, it’s another important tool to engage with clients and prospects on a timely basis.
Mary Parsons (mparsons@chubb.com) is executive vice president and Sales & Distribution leader with Chubb Personal Risk Services. These opinions are the author’s own.
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