What role tech plays in the carrier, agent, customer relationship

Improving the customer experience and operational excellence is the driving force for a majority of insurance digitalization initiatives in 2023, according to a new Gartner, Inc. survey. Early in this cycle of digitalization and technology advancements, carriers and agents often were wary that the benefits would favor newer distribution channels such as direct. Industry publications opined that comparative ratings provided directly to consumers would cut out advisors from the process. Some even predicted the end of underwriting. So why has the opposite happened? What has technology done for the carrier, agent and customer relationship?

The answer is simple: the agent model was reinforced, not disabled by technology. Now, customers pay agents for coverage and carrier advice rather than paying them to shop for the lowest rate. This came about because of the life cycle of cost for technology: new tech products and software has gotten cheaper over time, and some are offered free. While the independent agent industry has seen much consolidation over the past few years, they no longer need to combine forces to afford the technology to run their businesses as carriers look to invest heavily in their independent agent’s digital capabilities. This gives them the opportunity to provide those offerings for free to any agent. 

With more access to resources, like technology solutions, agents can offer online quoting to prospects and the ability for customers to self-serve for changes and upgrades, all while following their clients’ claims progress through the settlement process. Here are some examples of how carriers can offer agents technologically enabled resources to help achieve their shared goal of best serving policyholders:

APIs

A recent report by LexisNexis found that nearly 70% of carriers are working directly with agents to improve the insurance buying experience for prospective customers by making investments in technology to streamline quoting. Over time, agents can spend less and less time on long questionnaires to assess the condition of the home to get an accurate rate, freeing up more time for them to show the customer the difference between coverages and companies available to them. Using application programming interfaces (API), agents can integrate direct access to the quotes from carriers and can instantly send them to customers, making the insurance quoting process fast and effective and giving agents more time to spend discussing the positives and negatives of each companies’ services, financial strength and coverages with their clients.

Carrier technology helps customers avoid a fundamental mistake like thinking they know enough about insurance that they can buy it without advice. It is important for agents to step in and engage with customers during the process of online research, obtaining a quote, buying a policy, amending coverage and making a claim. Providing this personalized guidance and understanding of customer preferences nurtures not only customer loyalty, but also the agent carrier relationship. New technology will not only help agents identify what potential risk is in each household, but also what the “next best offer” is for that customer – allowing them to integrate this information into their own management systems.

Digital communication

Today, consumers are doing more of their business digitally and often without human interaction in some cases. We are quickly seeing digital asynchronous communication becoming the preferred method of interaction among policyholders. When it comes to how they want to be engaged, more than 80% of consumers said they prefer texting with an insurance carrier or agent and feel that agents that text build closer customer bonds, according to a survey by Hi Marley Inc. 

For agents, communicating throughout the customer insurance journey is a multi-faceted, multi-channel opportunity. Most customers research online via mobile devices. If they buy without expert advice, it is not too late. Technology solutions will allow an agent to review the purchase and offer advice to the new customer. The average consumer assumes homogeneity among carriers and coverages. This is the agent’s chance to shine. Explaining the missed purchases that put them at risk, and the exclusions and post-bind underwriting process for each carrier will save the customer money and time and frustration.   Technology allows agents to spend more of their time learning about prospective customers, offering a personal touch and providing them with a unique policy that is the right fit for their needs at a price they can appreciate. The best carriers provide agents with the tools that allow prospective customers the option to shop via chat, text and even in-app communications channels to interact with customers the way they prefer to shop, thus fostering a better experience. 

Claims

According to LexisNexis, more than 80% of claims will be processed virtually through claims process apps by 2025. The best carriers invest in self-serve adjusting tech tools for their agents, such as ClaimXperience, Hover and PLNAR that allow homeowners to collaborate with agents throughout the claims process. 

Reporting claims digitally speeds up response time, gives customers access to their claim file throughout the process and allows information to flow directly to claims adjusters for expedited processing. This allows agents to walk their clients through the whole process so they understand what to expect and what comes next. The vast majority of phone calls from agents and customers to carriers during the claim process are for status updates. Putting updates online reassures the consumer that such work is active, and gives them confidence the assigned adjuster has their interests top of their mind.

In the insurance industry, a positive customer experience boils down to the relationship between the carrier, policyholder and agent. As carriers curate their offerings, market to customers to buy their products, underwrite and take on risk, agents are there to provide the unique benefit of expert advice to customers as they adopt a tailored approach to finding the perfect policy for customers. There is no question that giving agents the technology tools to effectively operate can make the difference between a temporary transactional “touch” with a buyer and a lifelong customer and agent relationship.