What tangible value do I provide to consumers? This is the primary question that today’s insurance producers are asking, as they stare into the proverbial mirror. Gone are the days when selection or price were differentiators. More captive producers are turning to the independent channel, and premiums continue to rise across the board. With producers offering more options, but consumers paying more for those options, the value equation has changed. What happens between binding and renewal matters more than ever.
Here’s a closer look at what consumers consider valuable, and how your organization can provide it.
The Modern Definition of Value
A recent report from Accenture states that 71% of consumers are dissatisfied with their current insurance producer. Higher premiums certainly influence this sentiment, but that’s only part of the story. Indeed, it appears that many consumers find the entire insurance experience to be below their expectations.
Consider the following findings from Zywave’s Broker Services Survey:
- 57% of consumers say their top criterion for selecting an insurance producer is receiving answers in a timely manner.
- 53% of consumers are looking for their insurance producer to be a trusted advisor.
- 48% of consumers expect communication from their insurance producer monthly.
Roughly half the marketplace has clear expectations for insurance producers that don’t begin and end with policy options or price. But nearly three-quarters of consumers say those expectations are not being met. It doesn’t take a mathematician to see where the disconnect is.
Insurance producers can no longer rely on annual reviews to connect with their customers. And they can no longer get by with one-size-fits-all advice. Consumers won’t tolerate that behavior – and they might even shop around if it persists.
Bridging the Value Gap
So, how can insurance producers better meet consumer expectations?
It starts by understanding the challenges prevalent in the marketplace. This has less to do with the nuances of an industry than it does with the uncertainties of the modern working world.
Consumers are concerned with the following:
- Mitigating costs
- Staying up to date on compliance
- Implementing risk management procedures
- Understanding the details of their coverage
- Managing remote workforces
Personalized expertise in these areas can improve consumer satisfaction rates. But insurance producers cannot become encyclopedias overnight on these ever-evolving topics.
This is where technology can provide an assist. Dedicated, digitally-native solutions can help producers compile personalized resources and deliver them to consumers at scale – all without losing the personal touch.
For instance, producers can leverage employee handbook builders to provide personalized Human Resources documentation to their consumers. This can help those organizations manage employee onboarding and disciplinary processes.
Or, if consumers have remote employees located in different corners of the United States, producers can provide them multi-state compliance reports. Such reports can offer reviews of state-specific law with HR or safety implications for businesses.
Producers can also assist consumers with workplace incident tracking. Tools that provide documentation mandated by the Occupational Health and Safety Association (OSHA) can ease federal compliance headaches. They can also help businesses reduce risk and promote a culture of safety.
And producers can even offer consumers access to learning management systems. This can provide a central location for both required and recommended employee training, helping to build operational excellence across organizations.
Several tech-enabled consumer engagement platforms – including those offered by Zywave – contain some or all of these capabilities. Some also feature detailed reporting highlighting how these resources can improve a consumer’s bottom line.
Enhancing Customer Engagement
To truly bridge the value gap, insurance producers must focus on enhancing customer engagement throughout the entire lifecycle. This means being proactive rather than reactive. Regular check-ins, personalized advice, and timely updates can make a significant difference in how consumers perceive value.
Proactive Communication
Regular communication is key. Consumers appreciate it when their insurance producer reaches out with relevant information, reminders, or updates. This could be in the form of monthly newsletters, personalized emails, or even quick check-in calls. The goal is to keep the lines of communication open and ensure that consumers feel supported and informed.
Personalized Advice
One-size-fits-all advice is no longer sufficient. Consumers expect personalized recommendations that are tailored to their specific needs and circumstances. This requires insurance producers to have a deep understanding of their clients’ situations and to stay informed about changes in the industry that could impact their clients.
Leveraging Technology
Technology can play a crucial role in enhancing customer engagement. Customer relationship management (CRM) systems, for example, can help insurance producers keep track of client interactions, preferences, and needs. This information can then be used to provide more personalized and timely advice.
Building Trust and Loyalty
Building trust and loyalty is essential for long-term success. Consumers are more likely to stay with an insurance producer they trust and feel loyal to. This can be achieved by consistently providing value, being transparent, and demonstrating a genuine interest in the well-being of the client.
Transparency
Transparency is critical in building trust. Consumers want to know exactly what they are paying for and what they are getting in return. This means being clear about policy details, costs, and any potential changes that could affect the client.
Demonstrating Value
Insurance producers must continuously demonstrate the value they provide. This can be done by highlighting the benefits of the services offered, sharing success stories, and providing tangible examples of how they have helped other clients.
Conclusion
In today’s competitive marketplace, providing value throughout the customer life cycle is more important than ever. By understanding consumer expectations, leveraging technology, enhancing customer engagement, and building trust and loyalty, insurance producers can differentiate themselves and provide the tangible value that consumers crave.
Laura Seltmann is the Networks and Affiliations Director at ACT Supporting Partner Zywave, a leading insurtech empowering insurers and brokers to drive profitable growth and thrive in today’s escalating risk landscape. Click here to learn more.