Our survey of independent agents (IAs) yielded important insights into the future of the IA channel. We offer a set of actions agents and carriers should take to maintain dominance and profitability.
Many insurers depend heavily on independent agents. However, the dominance of the IA is being challenged by a number of factors, including changing consumer behavior, the rise of the direct channel and new insurance players with new distribution models. In addition, innovative digital technologies and big-data analytics are providing a powerful advantage to competitors that are better than most IAs at exploiting them.
Accenture wanted to find out what are the most pressing issues facing independent agents, what are their business priorities and what influences their interactions with carriers and customers. We teamed with TrueChoice Solutions to survey more than 1,100 agents in the United States. The research yielded important insights:
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Agents’ top priority is retaining and servicing existing customers.
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After improved customer service, adding sales capabilities is an important operational enhancement contributing to growth.
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The most valuable digital capability is effective carrier integration focused on web-based service and quoting.
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IAs say they select carriers on the basis of claims process quality and speed, underwriting appetite and pricing consistency.
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They claim their competitive advantage is due to a high quality customer experience and the ability to offer products from different carriers, rather than a superior advisory service.
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Agents join clusters, alliances or associations mainly to improve their access to carriers and to increase commissions, not for operational support.
Independent agents’ most pressing concerns:
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