The Technology—Communication Tug-of-War

Independent agents are becoming more and more captive to technology every day. They don’t realize they have lost touch with their insured. In a world of 24-7 business, voicemail and e-mail have become agents’ primary means of communication.

Many large agencies and brokers will not pay agents to service commercial and personal lines. Technology has made everything quicker and often cheaper. Selling price and coverage are the main focuses now. Today the word “relationship” is being left out of the equation, yet relationships are what keep the independent agency system alive.

Years ago, prior to the advent of technology, agents gave up the collection of premiums to company direct bill. The reason was cost, not because agents became poor collectors and managers of premiums. We, as independent agents, gave this up so we could spend more time talking with insureds. Now we use technology to let insureds access their information without ever talking to a real person. If this process continues, agents will make insurance a commodity and the client will accept the data from anyone for the right price—driving the independent agent into extinction.

As an owner of an agency, I call other agencies on a daily basis and seldom talk to a human being. I become frustrated as I listen to scripted messages. I’m transferred to company directories and have to type in the producer’s name, only to be greeted by a voicemail message because they are away from their desk. An insured could call the company directly if he/she wants to deal with this problem. It maybe cost effective for the agency, but this action does nothing to create a relationship. Every day the receptionist at my agency is thanked for answering and assisting insureds because she’s an important lifeline for our customers—one that cannot be replaced by a machine.

A second form of inter-office and agency company communication is e-mail. This technology is great for processing data, but can be a very poor vehicle for personal communication. At my agency, it’s no longer permitted to use e-mail when a problem arises. In the paste-mail was used, lost or misunderstood, causing numerous problems. I found that if a person took the time to call or meet in person, most issues were resolved. People were hiding behind e-mail and not addressing the problem. They would write things they’d never say in person. Underwriters are also guilty of using e-mail to fill their files and protect themselves during company reviews. They make demands and deadlines they would never request on the phone or face-to-face. This is not communication because it turns into a one-way street.

Many agents feel communication and convenience are one in the same, but that’s incorrect. A person can access an agency 24 hours a day, without talking to anyone. Insureds use 800 numbers to call in a claim before they talk to an agent. Commercial renewals are mailed with bills to save time. All these things may be convenient, but they remove an agent from the customer. If it gets to the point where an insured can satisfy all their insurance needs directly through a company—why should they have an agent?

In a soft market, where business is on a decline, I am asking agents to contact their insureds, not via e-mail or even phone, but face-to face. My agency has a coverage checklist to review and going over it in person is invaluable. Not only does it raise the average premium per account, but every agent has a positive experience. Being “too busy” is just an excuse for agents who don’t want to do the leg work—even technology-savvy clients can benefit from having an independent agent they know and trust. Communication is the exchange of thoughts and the independent agents have and always will do this best through face-to-face relationships.

Gene Earick is co-owner of Roby, Foster, Miller, Earick Inc. in Mansfield, Ohio.