Navigating our strange new world
There is likely to be a new version of normal for us all in the wake of COVID-19 and its economic fallout.
I’m writing this column on St. Patrick’s Day in New York City, and it’s the strangest day. There are no bagpipers warming up in the streets, no groups of Ireland enthusiasts gathered behind the country’s banners, no revelers in the bars, and Grand Central Terminal is almost empty.
COVID-19 has changed our way of life, in some ways more dramatically than 9/11 for New Yorkers.
After 9/11, we were still able to interact with neighbors. But with social distancing and lockdowns, as well as the proliferation of electronic communication, we have less human contact. It’s unsettling, and it concerns me.
The insurance industry is a relationship business that depends heavily on clear and consistent client contact.
Failure to communicate?
Communication in the Digital Age was a major concern for the agents who responded to the annual agent survey from NUPC and the National Association of Professional Insurance Agents (PIA). We set out to understand the challenges agents face in 2020 as well as their technology needs.
Based on survey responses, agents believe that discussions with clients that go beyond routine process and coverage questions are poorly suited to online service. As one agent said, “The average person truly doesn’t understand what coverages they require.”
Respondents also said it’s become difficult to establish trust with clients when the only communications are digital. Digital communications also reduce cross-sell and upsell opportunities.
Did I miss something?
In a related issue, many agents who responded to the survey noted that lack of communication in any form has led to accusations of fiduciary duty breaches. Agents worry that such errors & omissions (E&O) claims will increase with digital-only communications.
This becomes more of a problem with younger clients who only communicate electronically. They’re used to buying a product through a chatbot (thank you, Amazon), and they don’t think about holding conversations.
How many under-30s do you know who never pick up the phone at work or even walk to a co-worker’s desk to talk about a problem? When such individuals enter the insurance industry as new employees, there is a steep learning curve around the value and importance of actually talking to clients. When the client is just as reluctant to pick up the phone, the elements are present for an E&O claim.
Life goes on
We’re living through the novel coronavirus chaos, but natural disasters will continue to occur.
For example, spring flooding will be a problem for some locations, as it has been in years past, and drivers — especially delivery drivers — will get into car accidents. As an industry, we need to stay focused on day-to-day coverage issues while putting them into context for the clients.
There is likely to be a new version of normal for us all as the COVID-19 fallout may continue through the rest of 2020 and into 2021.
At NUPC and our online brand, PropertyCasualty360, our mission is to give you the information you need to manage your business and serve your clients. We’ll continue to do that despite the current disruption to the economy and society.
And that’s what is top of mind for me this month. Stay safe and healthy.
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