As the hard market drags on, agents and brokers are going the extra mile to prioritize customer communications, retention, technology and team morale.
A recent study by Trusted Choice, a national consumer brand representing members of America's Independent Insurance Agents and Brokers (Big I), found that independent agents are better positioned to meet the challenges posed by the market. We are increasing our efforts in several key areas. Collectively, agencies are re-harvesting skills that may have diminished in a softening market and leveraging technology to improve their edge in everything from communications to marketing to management.
Charles Symington, president and CEO of Big I, said: “To overcome challenging market conditions, independent insurance agencies are innovating to best serve their customers and deliver value. We are continuing to make further efforts to do so.”
“In this challenging market, the agencies that stand out are those that adapt and improve their communications, customer retention, technology and team morale,” Symington said. “And no one is better positioned to do all of this and help clients through these market cycles than independent agents.”
In our recently released report, Navigating the Hard Market: Independent Agencies React, we listed several areas that agents are focusing on to navigate the current market.
Agents prioritize communication and invest in client education. 65% of agents are increasing their communication with policyholders, with 85% using email and 77% by phone. 21% are increasing their paid advertising spend and 47% are focusing more on community engagement. 75% are providing more educational content to their clients. While 27% of agencies have put more resources into marketing, about 18% said they are cutting back on marketing spend and using other methods to reach clients and prospects.
The focus has shifted from acquisition to retention. 39% prioritize clients based on highest premium impact to the client, and fewer affiliates prioritize clients based on account size (8%) and account complexity (7%) is being re-emphasized. The survey also found that agencies have been working on updates for quite some time.
Agencies report adopting technology across the board, with 32% of small agencies (1-10 staff) and 45% of large agencies (25+ staff) recently using technology. Added. 18% of respondents said they added new technology systems or applications specifically to address the demands of this market. 13% added technology to help with automation, 10% added technology for agency management, and 10% added dedicated resources to upgrade his website.
Independent insurance agents are also boosting internal communications and boosting morale with perks like company-paid lunches and extra time off. When budgets allow, agents are clamoring for raises and bonuses. More than half of responding institutions have implemented new training initiatives to address market challenges.
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