Opportunities abound for agents to enhance personal lines services
A Nationwide study shows that consumers have evolving needs that require the support and expertise of insurance agents.
New research from Nationwide shows fresh opportunities are emerging for insurance agents as personal lines customers re-evaluate their coverages amidst the global pandemic.
The Agent Authority study illuminates that customers continue to need expert advice from insurance agents, with 44% of consumers currently reviewing one or more of their insurance policies, and 26% checking with their agent to discuss coverage.
“Consumers are looking for ways to ensure they have the right protection and control over their budgets as COVID-19 continues to impact the economy and American families,” Jeff Rommel, senior vice president of property and casualty sales and distribution at Nationwide, told PropertyCasualty360.com. “One way they’re doing this is through evaluating their insurance coverage to make sure it fits their needs. However, our survey revealed that nearly half (47%) of consumers find it challenging to understand what is and is not covered in their policies. This is where an independent agent is vital to help customers understand their coverage and respond to their evolving needs.”
Not only do customers find understanding coverage to be a challenge, but 55% of agents also said they struggle to educate clients on the level of coverage they need. To overcome this, Rommel suggests agents build ongoing relationships and set up regular calendar reminders to check in with their personal lines customers at least once a year. He also recommends that agents stay up-to-date on industry trends and technology, such as telematics that “allow customers to pay for insurance based on their driving habits, including how much or how safely they drive,” he noted.
Price is not always right
Consumers are nervous about the economy. So it is unsurprising that 45% of consumers are looking to find the best price for their needs, the study found. However, Rommel cautions agents to help their clients understand price is not the only factor they should consider.
“While there could be a better price out there, it is important to weigh the financial commitment against the best protection option. Reliable and fair claims service, digital customer solutions, and the financial strength and stability of the carrier all play roles in meeting the customer needs,” he said.
Customers have new needs
Personal lines clients want more from their agents than just traditional insurance advice. The study found that 26% of customers want guidance on retirement, and 16% want cybersecurity advice.
About half (49%) of consumers also prefer to handle their insurance needs digitally. While some agencies may view the metric as lost business, Rommel says there are ways for agents to tap this customer segment.
“Successful agencies are shifting their strategy to use digital tools and reinvent the way they market to and interact with customers. No one could have anticipated how significantly the COVID-19 crisis would reshape the business environment and accelerate the need for change in the insurance industry,” Rommel said. “A critical element is finding new ways to digitize, all while saving time and resources for the agency to devote to generating business. This means agents need to have quoting and binding capabilities available on their website, as well as the internal resources to quickly turn quotes around and get them to customers instantly. To help our agent partners, Nationwide launched Nationwide Express, which gives agents the power to quote and bind auto and home products in as little as 2 minutes.”
Agents must also be savvy investors in technology and marketing that increase market visibility and meet customer needs. ”This group of consumers also prefers self-servicing tools that allow them to quickly check their account and billing information on their own as opposed to bogging down their agents with time-consuming requests for information,” Rommel said.
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