Agents could do more to service clients' needs, study finds

Furthermore, nearly half of the insurance agents in the survey said providing the level of service customers demand is a challenge.

A survey from Nationwide found that agents are confident they are meeting the needs of their customers. Yet, some business owners and consumers have a different perspective on the services agents should provide. (Photo: Shutterstock)

The challenges of this year have heightened consumers’ awareness of their insurance policies, causing many to evaluate whether their agents are servicing their needs.

According to Nationwide’s latest Agent Authority research, some customers believe their insurance agents can do more to support them.

“Our latest research shows some emerging opportunities in the agent-customer relationship, particularly when navigating this current environment and economy,” Jeff Rommel, senior vice president of property and casualty sales at Nationwide, said in a release. “But while the data pinpointed gaps, agile agents will see ways to address their clients’ concerns, enhance retention, and grow their business.”

The study surveyed 2,600 U.S. independent insurance agents, small-business owners, mid-market business owners, mid-market business owners with fleet vehicles, and general consumers between June 9 and June 25 to understand what business owners and consumers value in their insurance relationships.

Are agents delivering?

The Agent Authority survey reveals a perception gap in the value agents believe they are bringing to their customers.

In one example, 95% of insurance agents said they are always there when their clients need them, but only 79% of customers felt the same. Similarly, 94% of agents reported they are regularly checking in with their customers; however, only 69% of customers said they receive sufficient check-ins from their agent.

The perception gap is slightly wider concerning small-business clients: 95% of insurance agents reported they’re always available for small-business owners, yet only 75% of the customer base agreed. Also, 69% of small-business owners feel their agents offer the best prices, whereas 91% of agents said their prices are the most competitive.

To help agents proactively close the perception gap and improve their service, Nationwide recommends performing regular check-ins every six months with top commercial lines clients and annual check-ins with personal lines customers.

“Small businesses and the independent agents who help protect them continue to face unprecedented and evolving business adversity,” Cathy Allocco, vice president of small commercial sales and distribution at Nationwide, said in a statement. “The best agents will ensure clients continue to feel their presence, even virtually, by identifying new ways to strengthen relationships, solve problems and offer peace of mind to clients whose expectations for expertise are on the rise.”

The study also found that nearly half of the small-business owners and consumers and the majority of the mid-market business owners also struggle to understand coverages in their policy and find it challenging to find the best price for protection needs.

Insurance agents also are facing similar difficulties: 55% of agents said they struggle to educate clients on the coverage they need, and 46% of agents said providing the level of service customers demand is a challenge.

What customers want

Customers want more than just property and casualty support from agents, the survey finds. Consider that more than half of the mid-market business owners who responded to the survey said they are asking their agents about employee benefits. Forty-five percent said they are interested in safety and loss control guidance.

The study also reveals a need for expertise in various other lines of business, including:

Also, as more personal lines customers conduct their insurance business online, many small-business clients still prefer the value of in-person agent interactions. Just 32% said they prefer to handle their insurance needs online, and 70% said they prefer to work with a local agent.

“The research shows that small-business owners are still struggling with understanding their insurance policy, and they appreciate an agent’s assurance that they have the right insurance coverage and protection for their needs,” said Nationwide in a press release.

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