PRMA study reveals insurance advisors are meeting a high bar
Insurance agencies that provide personal lines services to affluent clients often exceed today’s tough customer expectations.
Amazon and Apple excel at what they do. These companies have revolutionized the contemporary customer experience.
What do they have in common? Great products, quality services, effortless brand interactions and fantastic customer service. Such companies create big shoes for other industries to fill — including insurance.
Today’s customers expect an exceptional experience, whether it is buying online, getting a burger and a shake or even addressing personal insurance needs. What follows is an analysis of how personal lines insurance agents are doing when it comes to meeting customer expectations.
Agents rise to the challenge
A first-of-its-kind benchmark study conducted by the Private Risk Management Association (PRMA) shows personal lines insurance agencies in the high-net-worth segment are meeting the bar set by companies that are thought to be leaders in customer experience.
These customer experience leaders have something else in common; they enjoy a high Net Promoter Score (NPS). The NPS is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others, their loyalty to a brand, and their overall experience with a company.
Apple’s NPS is 63. Amazon’s is 62. Insurance agencies in the study that provided personal lines insurance services to the affluent customer averaged an NPS of 70.
The loyalty index of personal lines insurance agencies far exceeds the averages earned by household name insurance companies, such as State Farm and Geico. On average, auto insurers have a score of 36.
In auto insurance, NPS scores range from 23 to 45. Here’s how they rank, according to Satmetrix Systems:
Auto Insurance Company | 2019 Net Promoter Score |
| State Farm | 45 |
| The Hartford | 44 |
| AAA | 43 |
| Geico | 39 |
| Progressive | 39 |
| American Family | 37 |
| Farmers | 31 |
| Travelers | 31 |
| Allstate | 29 |
| Liberty Mutual | 23 |
| Average NPS Scores | 36 |
About the survey
PRMA conducted the study using the NPS survey to measure customer loyalty and to understand the overall experience customers have with their insurance agency. The primary goal was to provide a customer service benchmark for brokers and agencies so that they could better understand their relationship with clients, as well as their clients’ satisfaction levels.
Survey questions included, “How satisfied are you with the following interactions with our company?” and “What do you feel our company does particularly well?” Survey results revealed the importance of all touchpoints with a client.
Based on the feedback, agents can also map out new strategies that address areas where improvement is needed. The results clearly defined what clients value most and provide insight to all PRMA members who strive to excel in their industry.
Every interaction counts
The survey asked customers to rate satisfaction with touchpoints of the client/broker relationship. The satisfaction scores correlate to overall loyalty; the higher a satisfaction score of a touchpoint, the more likely a customer will wear enthusiasm on their sleeves. The results reveal not only high satisfaction scores for the onboarding experience, receiving advice, making changes, renewal and assistance from agencies on claims, but it sends a clear message that customers place equal value on all interactions. Agencies take note; it is not just about claims.
Customers may not always want to deal with their insurance, but when they do, they want a personal touch and want agencies to understand their pain points and anticipate their needs. The survey revealed that customers expect agencies to demonstrate value by acting in their best interest. How? By proactively reviewing coverages and accounts, staying ahead of market options and finding the best account fit. Further, the survey revealed that relationships matter, with honesty, trust and transparency being important pillars.
The gift of feedback
“Each year, we gain valuable insights from the NPS survey results,” says Matthew Goldman, principal and co-CEO of G2 Insurance Services, a San Francisco-based agency. “The survey gives clients an opportunity to tell us which services they are most satisfied with, why they would recommend us, and where we can improve.”
This level of detail is vital for an agency and sheds light on what a client values most.
“For example, a service such as our claims handling might be highly valued by clients, but it may not be the reason they would recommend our firm to someone else. This feedback ultimately helps our team service clients better while reiterating service differentiators that resonate with clients,” Goldman adds.
He asserts that both positive and constructive feedback are equally valuable. “Enthusiastic client comments give us an opportunity to reinforce our team’s hard work and dedication,” Goldman says. “At the same time, constructive criticism gives us the opportunity to address issues directly with clients and implement new standards and procedures.”
Insurance is a necessity, but customers have options when it comes to choosing an agency. As in any relationship, it is important to listen and to have constant dialogue. It is all about the experience for customers and learning from those experiences is infinitely valuable.
Azeema Hartley (azeema.hartley@privateriskmanagement.org) is the director of member relations at Private Risk Management Association, a collaborative group of professionals committed to providing best-in-class service and risk management solutions to high-net-worth individuals.
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