Its very much cost effective and efficient solution reacting to changing demographics and step forward to tomorrow’s market demand-dynamics. Unlike Baby-boomers, Millenial / GenY prefers internet shopping, paperless operations because they are raised in world dominated by technology and instant gratification.
Insurance market is simply reacting to changing demographics. If that is what GenY wants, all the other insurer will have to transform to ‘e-Policy’ in coming year(s).
Shrinivas, you are correct – I agree! As insurance professionals we must either provide value to customers/prospects or they may seek to purchase their insurance directly with the carrier via the internet. I have a substantial and growing number of customers that are computer technicans – both basic and advanced levels. Many of these formerly had their insurance via internet sales but, have since allowed my agency to handle their insurance because I show that I provide value. The more computer intelligent customers are the easiest to show value as their degree of intelligence results in appreciation of my staff providing them with accurate explanations of coverages and examples how their situation compares – exceeding any advise they can obtain online. We are also already aware of which carriers provide the best rates for their situation – we shop for them. It is the computer shopper of average intelligence that is the biggest challenge. They buy a policy online that doesn’t provide them the same high level of protection they had with my agency. We end up getting their business back in the long run – after they have had a claim that wasn’t adequately covered with their online carrier but, would have been with the policy they had with my agency.
In Texas, Progressive’s rates with agent written policies are the same as online rates. We should be having our annual agent’s meeting in this area (Dallas, Texas) next month. One of Progressive’s chief actuaries is always one of the keynote speakers. Fact is that Progressive has a better profit margin with agent placed policies. Why – simple! One, it cost more to staff and maintain a large building of CSRs that it does to pay an agent a reasonable commission (10% in Texas). Second, most carriers experience higher percentages of fraud claims with online customers because they insure cars without ever seeing them.
I got away from the main subject which is Changing Demographics. Bottom line is that any agency or business can change their marketing strategy to coincide with demographic changes. The key term is to “provide value to your customers”.
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.
Its very much cost effective and efficient solution reacting to changing demographics and step forward to tomorrow’s market demand-dynamics. Unlike Baby-boomers, Millenial / GenY prefers internet shopping, paperless operations because they are raised in world dominated by technology and instant gratification.
Insurance market is simply reacting to changing demographics. If that is what GenY wants, all the other insurer will have to transform to ‘e-Policy’ in coming year(s).
Shrinivas, you are correct – I agree! As insurance professionals we must either provide value to customers/prospects or they may seek to purchase their insurance directly with the carrier via the internet. I have a substantial and growing number of customers that are computer technicans – both basic and advanced levels. Many of these formerly had their insurance via internet sales but, have since allowed my agency to handle their insurance because I show that I provide value. The more computer intelligent customers are the easiest to show value as their degree of intelligence results in appreciation of my staff providing them with accurate explanations of coverages and examples how their situation compares – exceeding any advise they can obtain online. We are also already aware of which carriers provide the best rates for their situation – we shop for them. It is the computer shopper of average intelligence that is the biggest challenge. They buy a policy online that doesn’t provide them the same high level of protection they had with my agency. We end up getting their business back in the long run – after they have had a claim that wasn’t adequately covered with their online carrier but, would have been with the policy they had with my agency.
In Texas, Progressive’s rates with agent written policies are the same as online rates. We should be having our annual agent’s meeting in this area (Dallas, Texas) next month. One of Progressive’s chief actuaries is always one of the keynote speakers. Fact is that Progressive has a better profit margin with agent placed policies. Why – simple! One, it cost more to staff and maintain a large building of CSRs that it does to pay an agent a reasonable commission (10% in Texas). Second, most carriers experience higher percentages of fraud claims with online customers because they insure cars without ever seeing them.
I got away from the main subject which is Changing Demographics. Bottom line is that any agency or business can change their marketing strategy to coincide with demographic changes. The key term is to “provide value to your customers”.