Paul Carroll
I was interested in the consumer survey you published in December and figured we'd start there. Can you tell me a bit about the highlights? What are the situations that agents and their customers are facing these days because consumers are shopping more, or just acting differently than they have in the past?
Kasey Connors
For the last 18 months to two years, we have been hearing from agents on how much they've had to educate their clients on a number of factors and topics. We wanted to conduct that survey to really understand, from a consumer standpoint, how they're looking at their policies.
We saw that a little bit over 30% of respondents said they were not aware that there were external economic factors affecting their premiums, like supply chain issues, social inflation, rising litigation, soaring reinsurance costs, etc. Knowing that so many were not aware of these issues reinforces the value of independent agents, who serve as the information conduit between the industry and consumers.
Additionally, we learned, unsurprisingly, that consumers are really looking at price as a main driver and are putting their policies under a lot of scrutiny.
Paul Carroll
The survey was released in December, but I assume the basic trends are continuing?
Kasey Connors
I do think we’re facing the same main factors. We're starting to see inflation come down slightly. Insurance premiums can be influenced positively by interest rate decreases, but those things take time. I think we're going to continue to have a multitude of natural disasters. Overall, I think consumers are still looking at their price point, they're looking at their bottom line, they're putting their policies up for renewal.
At the same time, I think more consumers are starting to understand the effects of supply chain disruption and litigation, too. Now that we have been in a challenging market for a while, many agencies have adapted and are driving home with consumers the effects of the economics of the business.
As an aside, many of my friends don't work in the industry, but they've sent me emails from their agencies explaining the reasons that premiums are rising right now, and some of the bullet points are the very same that we shared with our members.
We have also seen some increase in consumers forgoing insurance altogether, which we hope will decrease as things stabilize. People are being educated that they can reduce rates by taking higher deductibles, but what is most important is that they are having that conversation with their agents to understand where that risk is really coming from.
Paul Carroll
So communication is big, to get in front of the confusion and dismay about rising rates. Is there anything more agents can do, beyond educating customers and preparing them for the fact that rates are going up all over the place?
Kasey Connors
Yes, and this is interesting timing, because we just released a follow-up survey with agents about how they're adapting to this marketplace. We really focused on four areas. The first is communication, with their clients and partners. There is also technology, and how agents are leveraging it to improve efficiency. Our survey found that almost 80% of agencies are getting more phone calls, so demands on staff are increasing. Agencies should also look at their remarketing ratio, as well as having renewal processes in place. Finally, we see that agencies can increase their focus on team morale.
Overall, agencies are thinking about their processes right now, and that is super important.
Paul Carroll
I'm curious about a couple things. One is, how do you recommend that people take the load off as long as 80% of agencies are getting more calls? Is this more self-service? Is this chatbots? How do you handle an influx of phone calls?
Kasey Connors
I think this varies depending on agency size and resources. We have seen some agencies leveraging technology more by using an AI feature to handle some of those direct communications via a chatbot. We have seen others automating their email workflows to really have that be more proactive in initiating renewals.
I think people have also looked at how they are aligning their staff and remarketing accounts based on how a client is affected. Many are only looking to remarket those that have a premium increase of 20% or more.
Some agencies are rethinking what the best client structure might be, as well. This might be a time where agencies are going to be looking at adding niche business lines or using other methods to increase their base book.
Agencies that are looking at improving their business processes are being the most successful.
Paul Carroll
The other question was about morale. It can't be a whole lot of fun to have clients calling up and yelling at your staff, who have to deliver bad news to people about rate increases. I'm wondering what agencies can do to improve the situation for their agents?
Kasey Connors
As part of the agents’ study, we found that at least 30% to 40% of agencies were implementing additional staff training. So, agencies are equipping their front end staff with ways to handle those situations. Agencies can also offer help to staff around mental health or just health in general.
There is a light at the end of the tunnel. If you talk to any agent right now who has been in the industry for 20-plus years, they're saying that this has been the most challenging market they have ever seen. If we can make it through this, we can make it through anything.
Agencies are having those important conversations with their staff and promoting the feeling that we're all in this together.
Paul Carroll
This is great. Do you have any final summary thoughts?
Kasey Connors
We know this market has been extremely challenging but Independent agents are positioned really well right now as they're able to be the real advocates and consultants to their clients and to support them.
It can be a lot more work for agencies currently. So it is important for agencies to review your business processes, as well as educating both your clients and your staff and leveraging technology when possible.
There's a lot of resources out there. Join an industry association, leverage your connections and talk to your peers about what technology is working for them and how you can get more out of what you already have. Leveraging your connections and relationships is even more important than ever as we lean on both our carrier partners and other industry contacts.
Paul Carroll
I’m certainly hoping things settle down this year and think they could.
Thanks, Kasey.
About Kasey Connors
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Kasey Connors serves as the VP of Marketing Operations of Trusted Choice, the national brand representing more than 25,000 Independent Agents who are members of the Big "I". Kasey also oversees digital marketing support for members, helping independent insurance agencies nationwide with their websites, content, technology, and automation to improve efficiencies and grow their business. Kasey has been with the Big “I” for six years. Kasey serves on the board of the Insurance Marketing and Communications Association (IMCA). She is also an officer on Invest, a national program that educates high school and college students on insurance, financial services, and risk management topics. |
