Stop shouting concerned. You think it’s ok to cut out expertise and advice. We aren’t selling shirts or peaches. This is a product that requires a little explanation. Didn’t all the problems with coverage and forms after Katrina and other hurricanes make any impact on you? This is a complicated product that’s best handled as a complicated product, not just some commodity to sell at the lowest price.
Oh yes, by the way, I think paperless is great. My company is part paperless and is headed further in that direction. We just aren’t selling cut trees, we are selling product and our expertise.
As a former marketing rep, I have visited many, many agents both independents and captives. I think the 80/20 rule applies here too. In 80% of those offices, CSR’s were quoting insurance by phone and in person. Talk to them. There are a few questions asked by policyholders, but very little advise and counsel on this complicated product is going on. It is simple questions about coverage and then it always goes back to price and deductibe. The majority of this can be handled electronically. I do not advocate getting rid of agents. Good ones are rare(that 20%). But future generations are not going to drive to an agents office. They will shop on line. Open your eyes.
I’m an old codger..35yrs in the business. However, I’m not so old that I can’t remember all the sweeping change that this industry was going to embrace over the years and how it would “change” things. Funny thing is, the really important stuff is essentially the same. HOW we communicate with customers is not nearly as important as what we have to say and when we say it. An agent who made a lot of money in the ’70’s, working in a paper environment will also make money using the latest electronics. Its NOT the media…it is the message.
Almost from Day 1 as a trainee with BEIC (Big Eastern Insurance Company)the death knell of the independent agency system has been sounded. Funny thing, good agents improvise, adapt and overcome (credit to Gunny Highway/Heartbreak Ridge). You guys/gals are still here and still an integral part of the insuring process. Despite what some of our younger, brighter cohorts have posted……the insuring world will never shift entirely to web based buying centers. Why??? Because most purchasers of insurance will ALWAYS need professional guidance that NO web site can deliver. Its the expertise of a good agent that is required….no electronic system can replace that. Electronics can only serve as a distribution method.
Example- 23yr old grad student(my daughter); living away from family for first time; highly computer/electronic literate decides she needs renters insurance (her Dad has drilled this into her head). With all the power of Dell, the Internet and various web sites she finds it necessary to consult with her uncle, the Insurance Man. Her needs were not met by the web.
Result= all her questions are answered; the right insurance is in place and she is now bringing her friends to Uncle Insurance so they can buy insurance for their apartments and autos. So much for the Independent Agent being replaced by a machine. BTW….Daugther and Uncle “talk” by email and IM all the time. Adapt and overcome…………..
1. The founder is a left wing nut who values raising the minimum wage so much that he can’t pay anyone a decent commission.
2. Paper is really used more so to reduce expenses, bring efficiency and less so to save trees unlike the article and progressive presents it as
3. They have a user friendly system
4. Progressive corporation practices every rule of extreme capitalism, yet their hypocrite founder vouchers for socialism (I guess he want to be the master franchisee of all socialist activity)!
As a 21 year old insurance-purchaser, technology extraordinaire, and licensed p/c agent, I completely agree with you, Rick. Today’s market place is streamlined USING technology, not overhauled by it. It seems people are threatened by some hostile computer takeover that is just not going to happen. Instead of resisting it, agents can USE technology to their advantage. People are generally smart enough to know that a computer cannot infer their personal insurance needs. Aren’t those the customers who most agents would like to target for business anyway? If all the unloyal timewasters who hop from agent-to-agent and company-to-company take their business online, doesn’t that free up more time to spend on quality prospective clients?
Good point Becky. I don’t think any of us are implying a hostile computer take over, but I don’t think some of us appreciate companies attempting to do so. I think that all of you have valid points and I would like to say that you are quite an intelligent group of individuals. Computers definitely have a lot of value in the insurance industry and they have, and will continue, to revolutionize it. Thanks to many of your comments, I am not worried that they will take over for people like some horrible sci-fi movie but will just help everyone in the market. I hope the fusion of brains and technology will evolve the new generations of agents to continue to compete with the idea of total automation.
Bob has a good point. A substantial segment of our customer base works with computers at their job/profession all day at the office. When they get home, the last thing they want to do is work with their PC. I didn’t fully realize this until I was helping to organize our high school reunion. We were relying on email to relay information only to find out that many classmates don’t look at their personal email very often.
As agents we must also provide value to our customers. My CSRs are trained to use everyday comparisons such as grocery store shopping when providing quotes – i.e. If you knew that you could get a 2 liter drink for only 5 cents more than a 1 liter would agree that is certainly a better value. True, you save $1 a month with $25K limits when compared to $50K limits but, you save $25K when you have an accident with $50K limits – which is the better value. We also use examples of customers that are paying judgements because they didn’t have enough insurance when they had a bad accident. Our best example is a customer that is a computer programer that bought his insurance online. He is now paying $210 a month to the court for the excess damages over and above his low policy limits from the online policy he purchased. We sell value – not price. If the customer is an idiot and just wants price then, we will write them but, don’t spend lots of time providing them service. If the customer appreciates the value we bring to them then, we provide great service and in return get a loyal customer that also provides referrals. My retention ratio has consistently been over 95% over my 28 years in the business and right now stands at about $97.5%. Unless someone dies or moves out of state we just don’t lose many customers to price. Neither does the delivery method of the policy from the carrier effective our relationship to our customers.
Progressive is providing us valuable services that makes our jobs easier. Progessive isn’t alone but, they do a better job of relaying their message to agents and the public.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
Stop shouting concerned. You think it’s ok to cut out expertise and advice. We aren’t selling shirts or peaches. This is a product that requires a little explanation. Didn’t all the problems with coverage and forms after Katrina and other hurricanes make any impact on you? This is a complicated product that’s best handled as a complicated product, not just some commodity to sell at the lowest price.
Oh yes, by the way, I think paperless is great. My company is part paperless and is headed further in that direction. We just aren’t selling cut trees, we are selling product and our expertise.
Well said “nobody important.” You hit this one right on the nose.
As a former marketing rep, I have visited many, many agents both independents and captives. I think the 80/20 rule applies here too. In 80% of those offices, CSR’s were quoting insurance by phone and in person. Talk to them. There are a few questions asked by policyholders, but very little advise and counsel on this complicated product is going on. It is simple questions about coverage and then it always goes back to price and deductibe. The majority of this can be handled electronically. I do not advocate getting rid of agents. Good ones are rare(that 20%). But future generations are not going to drive to an agents office. They will shop on line. Open your eyes.
Note to Marketing Rep –
Yep – and this was the same prediction in the early ’80’s when the Commodore 64 was hot. It’s all gonna’ be on line!
I’m an old codger..35yrs in the business. However, I’m not so old that I can’t remember all the sweeping change that this industry was going to embrace over the years and how it would “change” things. Funny thing is, the really important stuff is essentially the same. HOW we communicate with customers is not nearly as important as what we have to say and when we say it. An agent who made a lot of money in the ’70’s, working in a paper environment will also make money using the latest electronics. Its NOT the media…it is the message.
Almost from Day 1 as a trainee with BEIC (Big Eastern Insurance Company)the death knell of the independent agency system has been sounded. Funny thing, good agents improvise, adapt and overcome (credit to Gunny Highway/Heartbreak Ridge). You guys/gals are still here and still an integral part of the insuring process. Despite what some of our younger, brighter cohorts have posted……the insuring world will never shift entirely to web based buying centers. Why??? Because most purchasers of insurance will ALWAYS need professional guidance that NO web site can deliver. Its the expertise of a good agent that is required….no electronic system can replace that. Electronics can only serve as a distribution method.
Example- 23yr old grad student(my daughter); living away from family for first time; highly computer/electronic literate decides she needs renters insurance (her Dad has drilled this into her head). With all the power of Dell, the Internet and various web sites she finds it necessary to consult with her uncle, the Insurance Man. Her needs were not met by the web.
Result= all her questions are answered; the right insurance is in place and she is now bringing her friends to Uncle Insurance so they can buy insurance for their apartments and autos. So much for the Independent Agent being replaced by a machine. BTW….Daugther and Uncle “talk” by email and IM all the time. Adapt and overcome…………..
1. The founder is a left wing nut who values raising the minimum wage so much that he can’t pay anyone a decent commission.
2. Paper is really used more so to reduce expenses, bring efficiency and less so to save trees unlike the article and progressive presents it as
3. They have a user friendly system
4. Progressive corporation practices every rule of extreme capitalism, yet their hypocrite founder vouchers for socialism (I guess he want to be the master franchisee of all socialist activity)!
As a 21 year old insurance-purchaser, technology extraordinaire, and licensed p/c agent, I completely agree with you, Rick. Today’s market place is streamlined USING technology, not overhauled by it. It seems people are threatened by some hostile computer takeover that is just not going to happen. Instead of resisting it, agents can USE technology to their advantage. People are generally smart enough to know that a computer cannot infer their personal insurance needs. Aren’t those the customers who most agents would like to target for business anyway? If all the unloyal timewasters who hop from agent-to-agent and company-to-company take their business online, doesn’t that free up more time to spend on quality prospective clients?
Good point Becky. I don’t think any of us are implying a hostile computer take over, but I don’t think some of us appreciate companies attempting to do so. I think that all of you have valid points and I would like to say that you are quite an intelligent group of individuals. Computers definitely have a lot of value in the insurance industry and they have, and will continue, to revolutionize it. Thanks to many of your comments, I am not worried that they will take over for people like some horrible sci-fi movie but will just help everyone in the market. I hope the fusion of brains and technology will evolve the new generations of agents to continue to compete with the idea of total automation.
Bob has a good point. A substantial segment of our customer base works with computers at their job/profession all day at the office. When they get home, the last thing they want to do is work with their PC. I didn’t fully realize this until I was helping to organize our high school reunion. We were relying on email to relay information only to find out that many classmates don’t look at their personal email very often.
As agents we must also provide value to our customers. My CSRs are trained to use everyday comparisons such as grocery store shopping when providing quotes – i.e. If you knew that you could get a 2 liter drink for only 5 cents more than a 1 liter would agree that is certainly a better value. True, you save $1 a month with $25K limits when compared to $50K limits but, you save $25K when you have an accident with $50K limits – which is the better value. We also use examples of customers that are paying judgements because they didn’t have enough insurance when they had a bad accident. Our best example is a customer that is a computer programer that bought his insurance online. He is now paying $210 a month to the court for the excess damages over and above his low policy limits from the online policy he purchased. We sell value – not price. If the customer is an idiot and just wants price then, we will write them but, don’t spend lots of time providing them service. If the customer appreciates the value we bring to them then, we provide great service and in return get a loyal customer that also provides referrals. My retention ratio has consistently been over 95% over my 28 years in the business and right now stands at about $97.5%. Unless someone dies or moves out of state we just don’t lose many customers to price. Neither does the delivery method of the policy from the carrier effective our relationship to our customers.
Progressive is providing us valuable services that makes our jobs easier. Progessive isn’t alone but, they do a better job of relaying their message to agents and the public.