I think that the prior posts have made the assumption that consumers aren’t intelligent enough to shop and compare coverages of internet based direct sales companies.
I personally purchase my auto coverage from an online company and have been very pleased with both customer service and claims handling (my husband was rear ended). I reviewed several web based carriers as well as getting a quote from a local agent. I compared coveages and prices and found that my best choice was the internet based comapny.
I believe that you are being short sighted if you don’t give your customers enough credit. Most people can read and compare. I know the language can be a bit tricky. I bet you have many customers that are quite capable of meeting the challenge…don’t sell them short.
to the previous comment I would say that from studies done and my 13 years of experience as an agent those who do know the “tricky language” are in the minority at approximately 10% so take the other 90% and you do the rest of the math. People do not understand nor do they have it explained to them and I am continually educating those who have never had a real person sit down with them and go over what their getting for what their paying and allow them choices to tailor their coverage to their needs and situation. Many of these people have been left uncovered because all they were ever told by the online companies is “you have full coverage” and didn’t know that didn’t mean rental car, zero deductible glass, med pay ect. . It just doesn’t happen or ever will on a consistent basis without “real people” intervention. Go ahead and keep trying though and take your chances.
It’s my understanding that statistics indicate that it’s the insureds who switch often that have the highest number of claims. The longer an insured is with a single company the better the claim experience. That may just be the experiennce of my company, but I don’t think so.
nothing will ever replace the real people concept of providing insurance to the public no matter how much the call center and vending machine type insurance companies try. Wether that appeals to the insureds out there more or not only speaks to the recognition of the value of an agent based company. If the public continually becomes more and more short sighted thinking somehow they are benefeiting themself in the short term will end up costing them self more in the long run than if they stayed with one company and exhibited some loyalty and patience instead of being an immediate gratification type of society. If the only thing that determines who people have their insurance with is price then they will become serial switchers and as mentioned by the previous persons comments those type of people have more claims and cause a huge unprofitablity in the industry. Don’t ever think that computerized, automated, call center type service and phone systems will ever replace dealing with a real person and having an established realtionship , understanding and genuine interest and knowledge of each person’s needs and best interests. Nuff Said!!!
I aggree with both comments. An agent can be a valuable resource to a customer by explaining things like risk, liability, and coverages. In addition, the agent can tell the insured what to expect when a claim is submitted.
Some people who frequently “jump” carriers or are bottom feeders for low premiums and don’t understand the basic tenants of insurance are often “dis-satisfied” when they have a claim because they are clueless. The other component in “satisfaction” is the competency of the claims representive in creating and meeting expectations.
We all agree about, and the study illustrates, the value of an agent and why satisfaction is greater with policies purchaed with the help of an agency than directly purchased policies. Those who shop directly mainly for low advertised prices and don’t do their homework are bound to be disappointed sometime, especially if they think all policies are the same. Unfortunately, the business has become commodicized and companies seeking direct customers have trained them to think of buying insurance as the same as buying any other commodity, although people probably put more care in buying a TV than their insurance, which potentially has a greater affect on their well-being.
The internet purchased policies I replace are written at lower limits of liability for people who have something to lose financially not to mention an underinsured claim reduction should the need arise. Thing of an online purchase as getting you medical needs met over the internet by DR DR.com. My favorite advertising slogan on our local airways is”minimum limits for minimum prices”. The add shows afamily of four with 2 small children in a new auto. I for one think ther is a very large deficiency of national advertising to promote the counsel and purchase of insurance from a local professional. On a side note, my CSR”s are licensed but they are not comfortable in selling insurance. For this need we have sales people.
In my company’s call center, both our sales agents and service counselors are licensed and trained to coverage counsel. With that said, most consumers find it easier to lie to a computer than to lie to a real person. Before the whole gas crisis started, we had 50% of our internet customers claim that they drive less than 3000 miles a year when the national average is more like 12000-14000. Only 25% of our call center customers made that same claim.
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I think that the prior posts have made the assumption that consumers aren’t intelligent enough to shop and compare coverages of internet based direct sales companies.
I personally purchase my auto coverage from an online company and have been very pleased with both customer service and claims handling (my husband was rear ended). I reviewed several web based carriers as well as getting a quote from a local agent. I compared coveages and prices and found that my best choice was the internet based comapny.
I believe that you are being short sighted if you don’t give your customers enough credit. Most people can read and compare. I know the language can be a bit tricky. I bet you have many customers that are quite capable of meeting the challenge…don’t sell them short.
to the previous comment I would say that from studies done and my 13 years of experience as an agent those who do know the “tricky language” are in the minority at approximately 10% so take the other 90% and you do the rest of the math. People do not understand nor do they have it explained to them and I am continually educating those who have never had a real person sit down with them and go over what their getting for what their paying and allow them choices to tailor their coverage to their needs and situation. Many of these people have been left uncovered because all they were ever told by the online companies is “you have full coverage” and didn’t know that didn’t mean rental car, zero deductible glass, med pay ect. . It just doesn’t happen or ever will on a consistent basis without “real people” intervention. Go ahead and keep trying though and take your chances.
It’s my understanding that statistics indicate that it’s the insureds who switch often that have the highest number of claims. The longer an insured is with a single company the better the claim experience. That may just be the experiennce of my company, but I don’t think so.
nothing will ever replace the real people concept of providing insurance to the public no matter how much the call center and vending machine type insurance companies try. Wether that appeals to the insureds out there more or not only speaks to the recognition of the value of an agent based company. If the public continually becomes more and more short sighted thinking somehow they are benefeiting themself in the short term will end up costing them self more in the long run than if they stayed with one company and exhibited some loyalty and patience instead of being an immediate gratification type of society. If the only thing that determines who people have their insurance with is price then they will become serial switchers and as mentioned by the previous persons comments those type of people have more claims and cause a huge unprofitablity in the industry. Don’t ever think that computerized, automated, call center type service and phone systems will ever replace dealing with a real person and having an established realtionship , understanding and genuine interest and knowledge of each person’s needs and best interests. Nuff Said!!!
I aggree with both comments. An agent can be a valuable resource to a customer by explaining things like risk, liability, and coverages. In addition, the agent can tell the insured what to expect when a claim is submitted.
Some people who frequently “jump” carriers or are bottom feeders for low premiums and don’t understand the basic tenants of insurance are often “dis-satisfied” when they have a claim because they are clueless. The other component in “satisfaction” is the competency of the claims representive in creating and meeting expectations.
Erie ?
Did you ever get that eerie feeling ?
It happens when you get your renewal
We all agree about, and the study illustrates, the value of an agent and why satisfaction is greater with policies purchaed with the help of an agency than directly purchased policies. Those who shop directly mainly for low advertised prices and don’t do their homework are bound to be disappointed sometime, especially if they think all policies are the same. Unfortunately, the business has become commodicized and companies seeking direct customers have trained them to think of buying insurance as the same as buying any other commodity, although people probably put more care in buying a TV than their insurance, which potentially has a greater affect on their well-being.
Time will tell.
What about online only companies that use licensed agents in their call center?
The internet purchased policies I replace are written at lower limits of liability for people who have something to lose financially not to mention an underinsured claim reduction should the need arise. Thing of an online purchase as getting you medical needs met over the internet by DR DR.com. My favorite advertising slogan on our local airways is”minimum limits for minimum prices”. The add shows afamily of four with 2 small children in a new auto. I for one think ther is a very large deficiency of national advertising to promote the counsel and purchase of insurance from a local professional. On a side note, my CSR”s are licensed but they are not comfortable in selling insurance. For this need we have sales people.
In my company’s call center, both our sales agents and service counselors are licensed and trained to coverage counsel. With that said, most consumers find it easier to lie to a computer than to lie to a real person. Before the whole gas crisis started, we had 50% of our internet customers claim that they drive less than 3000 miles a year when the national average is more like 12000-14000. Only 25% of our call center customers made that same claim.