Editor’s note: ACT executive director Ron Berg and industry consultant Rick Morgan sat down for an hour to talk about technology opportunities in the independent agency channel. Movement in other industries could serve as a good model for overhaul in ours. This is Part II of their discussion. (Comments have been edited for clarity and concision.)
Rick Morgan: Society is changing in front of us, especially regarding technology. I am worried we are not keeping up and are missing opportunities. For example, the day is coming when people in urban centers won’t even own cars. They’ll just call or text for one when they need it. What does that mean for personal auto insurers and agents? Maybe eventually we are talking about self-driving cars that we grab when we need and drop off when we’re done at our destination. It then would be programmed to head off to the next customer. What does that do to insurance? It’s pretty radical change that is coming.
Ron Berg: In terms of homeowners, we are expecting to see increasing use of data mining to analyze prospects as well.
Morgan: Yeah. There are tools that can get you virtually all the info you need on a building, both home and risk. These may eliminate the need to do home inspections in person. In business, will 3D printing change insurance covering inventory? We are looking at a potential overhaul of insurance coverages.
Berg: This is true for service industries too. The IoT (Internet of Things) will eventually make it possible for an appliance that breaks down to communicate to the company what has gone wrong, order the needed part, have it shipped to the best-suited repairman, and alert them to schedule the repair with the customer. This is a totally new business model that may drive changes in coverage. How do we stay in front of all of this, leverage it and best serve the client?
Morgan: Interestingly, these advancements in the service industry set the tone for all in the service industry, so when an agent is handcuffed to the old service models – “I need to fax this to you” or “I can’t take card payment, I can only take a check” – the consumer goes, “Are you kidding me?” It makes us look like we’re the Flintstones instead of the Jetsons.
Berg: We need to integrate all that’s out there to build on our core competency as a trusted advisor. This is what we can give that no other distribution channel can – that trusted advisor role.
Morgan: Millennials recognize the value of a trusted relationship. Still we need new products that respond to the lifestyle of the new insurable generations. Products should be adaptable for home just as they are starting to be for driving. If we don’t start customizing products, someone else will jump in and take it away from us.
Berg: When we look at the first three stages of the customer’s insurance journey – Discovery, Evaluation, and Buying – if a customer gets online and can’t find your business, or if they do find you and your profile is poorly done, it’s like, “OK, never mind. I’ll find someone else.” If agents can’t communicate in the way the consumer wants – text, e-mail, whatever – the client says, “I’m not doing business with those kinds of people. That’s not how I live my life or do my business.” If we don’t do it their way, we’re out of business.
Morgan: Yes. That’s our call to action. We should be jumping into a world that allows us to meet our customer and how they want to do business. We are getting compared in customer experience with all sorts of organizations outside our industry. The independent agency channel can do this – but it better be sooner rather than later.