IVANS: Agents want greater connectivity from insurers
The annual Agency-Insurer Connectivity Report reveals how digital initiatives can be designed for the benefit of all stakeholders.
How are insurers meeting the digital demands of insurance agents?
IVANS, a division of Applied Systems, sought out to answer that question and more in its annual agency-insurer connectivity study. The report, “2020 Digital Connectivity Technology Adoption Survey: 6 Key Trends,” highlights responses from more than 2,700 agents and insurers on the state of connectivity and how digital initiatives can be designed for the benefit of all stakeholders.
“This year’s Annual Agency-Insurer Connectivity Report shows a promising increase in connectivity from agents and insurers with even greater appetite to continue to bring the distribution channel closer together via technology,” said Reid Holzworth, chief executive officer at IVANS Insurance Solutions, in a press release. “While adoption has risen, there is still ample opportunity for agencies, MGAs and insurers to embrace technology and allow for greater transparency and collaboration between stakeholders, removing friction from the insurance sales and servicing processes and creating collective value for the entire ecosystem.”
The findings of the 2021 study reveal six insights about agent-insurer connectivity…
1. Agents want connectivity.
More than 70% of agencies ranked ‘automated interface with insurer partners’ at either a 9 or 10 on a scale of 1-10 of importance. In contrast, just 47% of insurers agreed with agents on the importance of automated interfaces.
Agents also noted several benefits of complete connectivity between agencies and insurers, including time savings (88%), ease of doing business (79%), and the ability to serve clients faster (78%).
2. Agents want speed and convenience with personal lines quoting.
Nearly three out of four agents in the study said they would prefer to have personal lines quoting capabilities integrated into their agency management systems. At present, 48% of agencies said they mostly use comparative raters.
Sixty-two percent of insurers reported using their own portals to receive and produce quotes, while 39% said agencies email underwriters to receive personal lines quotes.
3. Quoting certain markets can be a challenge.
The most common way agencies find markets is by calling an insurer market rep (55%), followed by insurer websites (41%), using appetite guides (32%) and asking colleagues (31%).
However, about 70% of agencies reported challenges in finding markets to quote risks, often resulting in the loss of business. To remedy this, 85% of agencies suggested that insures offer real-time appetite within management systems. This will allow agents to spend less time finding markets and more time advising clients and delivering the best possible quotes.
4. There’s room for improvement in commercial lines.
According to the survey, agencies most commonly visit various individual insurer portals when quoting commercial lines, which goes against the preferred method mentioned by 50% of agents who prefer to begin the process in the management system, get a quote, and then launch into an insurer portal. This also highlights a disconnect between agency and insurer preferences, as insurers prefer to receive quotes via their own portals.
5. Commercial lines overhead is impacting insurers.
The survey illuminates the expenses insurers face when processing commercial submissions, with the average cost per submission being $2,776, says IVANS. Furthermore, about 39% of insurers reported that 26-50% of commercial submissions are declined or not quoted, which means a lot of time and money is often spent on quotes that fail to produce actual business.
The majority of insurers admitted that they spend too much time on administrative tasks associated with these submissions and would be better served with a digital system that can process quote requests quickly and effectively. Agents agree that a more digital way to submit commercial quotes would be a benefit, with 77% stating they would give more business to insurers that quote the fastest.
6. Agents and insurers see the benefits of automated download servicing technology.
Sixty-nine percent of agencies reported using eDocs and messages download capabilities, and 65% of insuers said they send eDocs and messages directly to partners’ management systems, marking a 19% increase year-over-year. Agents and insurers also are closely aligned when using download functions for claims: 60% of agencies said they use the capability, and 59% of insurers said they send claims information directly to partners’ management systems — a 110% increase from 2019.
For more findings from the IVANS® Annual Agency-Insurer Connectivity Report, click here.
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