I think we have lost sight of the topic a bit. The article relates only to *BUYER* satisfaction, not overall customer satisfaction. I don’t think anyone’s really arguing that it’s better to buy online or from a call center when servicing of the policy is involved. Of course a local agent who knows your name and situation is better than dealing with “Agent #257” in a huge call center.
The question is whether or not a buyer can be satisfied during the policy purchase process by a licensed and experienced agent, even if they work in a call center. My feeling is that most of you think there is no such thing as an experienced call center agent, or that there are very few of them, which means the customer won’t get what they need.
I don’t know that I agree in every situation, but probably in general that’s true. I wonder, though, about independent general agencies that sell for multiple carriers. What do you think about their call centers?
article by our friends in the legal profession how badly some of these companies rated for customer service? Now an article about how great some of the same companies are? What crap.
Also, I interviewed a young lady for a csr position in my office. She worked for a direct writer who only writes in my state, but has a great reputation with their clients. I asked her why she wanted to leave them and work for me. She told me the carrier requires csr’s to average six minute calls, and those csr’s who were on the phone TOO LONG with their clients were given undesirable shifts (weekends, nights, holidays). She told me she liked insurance, and liked to help people, but felt she was unable to do so satisfactorily under those conditions.
Lastly, I believe Geico has been running at an expense ratio loss for 3 or 4 years due to very expensive advertising. They lose clients after they experience claims with Geico. Geico has done this before a few times, and they’ll do it again in ten or so years. Its called the Geico cycle, whereby the following occur:
1) they advertise like crazy that they are cheaper, even if they are not.
2) advertising entices a record number of shoppers (see the above article – record shoppers)
3) lapse can goes up due to bad claims handling.
4) like cooking spaghetti, some sticks, especially those who have not had claims.
5) regular companies use the next ten years to pick Geico clean, because of poor service and rates that ARE NOT LOW.
Sorry to ramble – been without computer for ten days.
Shawn,
I have been a licensed agent for over 30 years. I have found call centers can work better sometimes and agencies work better sometimes. Neither is perfect nor is the local agent always informed of all statutory changes in their state due to membership in a weak association looking to make money off of CE only. I own agencies and work at call centers. I have build call centers and they can work well when everyone cares and tries to retain the business. Whoever said Buffet is not doing so well is just as uninformed as half the posters here.
Do not lump everyone in the same basket as you will be surprised if you visit my call center…
Shawn,
I have been a licensed agent for over 30 years. I have found call centers can work better sometimes and agencies work better sometimes. Neither is perfect nor is the local agent always informed of all statutory changes in their state due to membership in a weak association looking to make money off of CE only. I own agencies and work at call centers. I have build call centers and they can work well when everyone cares and tries to retain the business. Whoever said Buffet is not doing so well is just as uninformed as half the posters here.
Do not lump everyone in the same basket as you will be surprised if you visit my call center…
I am an insurance professional. I started as a call center representative in 1989 with a direct marketing company. A lot has changed since then. The call center is good for processing policy changes and sometimes for billing questions. That’s it. If a client wants to be sure they are working with someone who knows what they are doing & can make good recommendations based on their needs – see a brick & mortar agent. Call center agents cannot take the time to do a thorough review. When I left the call center setting in 2001, the average call was 3 minutes. If I spoke to less than 10 people per hour, management had a problem. I now work for an independent agent. If you just want a price, check the internet. If you want professional service – go to an agent’s office, meet the agent, get a review.
I have been fascinated for some time with people who think they can buy insurance at call centers and on line like they would buy a book. This is a complicated product that requires a professional to make proper recommendations for proper coverage. If you don’t you may not have proper coverage for the exposure.
When standard terms are “Full Coverage” and “Comprehensive Coverage” it is easy to see how many consumers can get confused as to what is really covered and not. If the true meanings of thoes terms are not defined, how can an informed decision be made?
I think there are good uses of a call center. My agency subsribes to the call centers of our carriers. Clients can call them after hours and put in a claim or check that their payment was received. Passed that there is not enough knowledge of the individual clients needs to help make informed decisions.
I find it is hard for clients to lie to you when you call them by name and ask how the wife and kids are. How many call center direct writers can do that?
I think the type of insurance coverage you are shopping for is a main consideration in choosing a online direct insurer vs. the brick and mortar agent. Personal auto coverage is pretty straight forward coverage and if you have been purchasing coverage for many years you know what kind of coverage and limits you need.
However if you are purchasing homeowners coverage you should have a local agent who is familiar with the housing and building costs in your area.
I’ve wracked my brain and come up with a pretty good analogy for what we in the insurance industry do. We sell “Life Preservers”… call them Flotation Devices, Bulletproof Vests, Parachutes; I don’t care. But I certainly don’t want to see people buying Flotation Devices, Bulletproof Vests or Parachutes from someone who cannot or will not take the time to make sure the item “works” and “fits”, to carry the analogy through to its conclusion.
Comments were made by AZ ins man who has developed call centers he is proud of and feels they service customers well. He said I should not be too sure of myself when call center reps are capable “sometimes” of assisting customers like an agent can. I think you made the point Az Ins man. Sometimes translates into about 5% of the time. See the other comments since my last posting. You even have evidence from those who work in call centers from years that they are mostly only good for checking payment status ( sometimes) and doing changes. If your call centers are in your estimation better than average then you would be the exception and not the rule so what we are talking about is overall you get 95% unprofessional and uninformed people trying to pretend to be licensed insurance reps when they cannot and will not ever replace an agent. Like has been mentioned already it is amazing to me that purchasing insurance online and over the phone has been reduced to such a practice as this and advertised as some kind of greate service?? Do we do that with legal services, dentist’s , doctors , accountants ect. . If insurance is not just as professional of a field as any of those why should we be encouraging customers that they can figure this out for themself online or with some call center rep who is 95% incompetent!! Thanks for making my point Az ins man.
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I think we have lost sight of the topic a bit. The article relates only to *BUYER* satisfaction, not overall customer satisfaction. I don’t think anyone’s really arguing that it’s better to buy online or from a call center when servicing of the policy is involved. Of course a local agent who knows your name and situation is better than dealing with “Agent #257” in a huge call center.
The question is whether or not a buyer can be satisfied during the policy purchase process by a licensed and experienced agent, even if they work in a call center. My feeling is that most of you think there is no such thing as an experienced call center agent, or that there are very few of them, which means the customer won’t get what they need.
I don’t know that I agree in every situation, but probably in general that’s true. I wonder, though, about independent general agencies that sell for multiple carriers. What do you think about their call centers?
article by our friends in the legal profession how badly some of these companies rated for customer service? Now an article about how great some of the same companies are? What crap.
Also, I interviewed a young lady for a csr position in my office. She worked for a direct writer who only writes in my state, but has a great reputation with their clients. I asked her why she wanted to leave them and work for me. She told me the carrier requires csr’s to average six minute calls, and those csr’s who were on the phone TOO LONG with their clients were given undesirable shifts (weekends, nights, holidays). She told me she liked insurance, and liked to help people, but felt she was unable to do so satisfactorily under those conditions.
Lastly, I believe Geico has been running at an expense ratio loss for 3 or 4 years due to very expensive advertising. They lose clients after they experience claims with Geico. Geico has done this before a few times, and they’ll do it again in ten or so years. Its called the Geico cycle, whereby the following occur:
1) they advertise like crazy that they are cheaper, even if they are not.
2) advertising entices a record number of shoppers (see the above article – record shoppers)
3) lapse can goes up due to bad claims handling.
4) like cooking spaghetti, some sticks, especially those who have not had claims.
5) regular companies use the next ten years to pick Geico clean, because of poor service and rates that ARE NOT LOW.
Sorry to ramble – been without computer for ten days.
Shawn,
I have been a licensed agent for over 30 years. I have found call centers can work better sometimes and agencies work better sometimes. Neither is perfect nor is the local agent always informed of all statutory changes in their state due to membership in a weak association looking to make money off of CE only. I own agencies and work at call centers. I have build call centers and they can work well when everyone cares and tries to retain the business. Whoever said Buffet is not doing so well is just as uninformed as half the posters here.
Do not lump everyone in the same basket as you will be surprised if you visit my call center…
Shawn,
I have been a licensed agent for over 30 years. I have found call centers can work better sometimes and agencies work better sometimes. Neither is perfect nor is the local agent always informed of all statutory changes in their state due to membership in a weak association looking to make money off of CE only. I own agencies and work at call centers. I have build call centers and they can work well when everyone cares and tries to retain the business. Whoever said Buffet is not doing so well is just as uninformed as half the posters here.
Do not lump everyone in the same basket as you will be surprised if you visit my call center…
I am an insurance professional. I started as a call center representative in 1989 with a direct marketing company. A lot has changed since then. The call center is good for processing policy changes and sometimes for billing questions. That’s it. If a client wants to be sure they are working with someone who knows what they are doing & can make good recommendations based on their needs – see a brick & mortar agent. Call center agents cannot take the time to do a thorough review. When I left the call center setting in 2001, the average call was 3 minutes. If I spoke to less than 10 people per hour, management had a problem. I now work for an independent agent. If you just want a price, check the internet. If you want professional service – go to an agent’s office, meet the agent, get a review.
I have been fascinated for some time with people who think they can buy insurance at call centers and on line like they would buy a book. This is a complicated product that requires a professional to make proper recommendations for proper coverage. If you don’t you may not have proper coverage for the exposure.
When standard terms are “Full Coverage” and “Comprehensive Coverage” it is easy to see how many consumers can get confused as to what is really covered and not. If the true meanings of thoes terms are not defined, how can an informed decision be made?
I think there are good uses of a call center. My agency subsribes to the call centers of our carriers. Clients can call them after hours and put in a claim or check that their payment was received. Passed that there is not enough knowledge of the individual clients needs to help make informed decisions.
I find it is hard for clients to lie to you when you call them by name and ask how the wife and kids are. How many call center direct writers can do that?
I think the type of insurance coverage you are shopping for is a main consideration in choosing a online direct insurer vs. the brick and mortar agent. Personal auto coverage is pretty straight forward coverage and if you have been purchasing coverage for many years you know what kind of coverage and limits you need.
However if you are purchasing homeowners coverage you should have a local agent who is familiar with the housing and building costs in your area.
I’ve wracked my brain and come up with a pretty good analogy for what we in the insurance industry do. We sell “Life Preservers”… call them Flotation Devices, Bulletproof Vests, Parachutes; I don’t care. But I certainly don’t want to see people buying Flotation Devices, Bulletproof Vests or Parachutes from someone who cannot or will not take the time to make sure the item “works” and “fits”, to carry the analogy through to its conclusion.
Comments were made by AZ ins man who has developed call centers he is proud of and feels they service customers well. He said I should not be too sure of myself when call center reps are capable “sometimes” of assisting customers like an agent can. I think you made the point Az Ins man. Sometimes translates into about 5% of the time. See the other comments since my last posting. You even have evidence from those who work in call centers from years that they are mostly only good for checking payment status ( sometimes) and doing changes. If your call centers are in your estimation better than average then you would be the exception and not the rule so what we are talking about is overall you get 95% unprofessional and uninformed people trying to pretend to be licensed insurance reps when they cannot and will not ever replace an agent. Like has been mentioned already it is amazing to me that purchasing insurance online and over the phone has been reduced to such a practice as this and advertised as some kind of greate service?? Do we do that with legal services, dentist’s , doctors , accountants ect. . If insurance is not just as professional of a field as any of those why should we be encouraging customers that they can figure this out for themself online or with some call center rep who is 95% incompetent!! Thanks for making my point Az ins man.