Are Your Carrier Partners Stuck in the Dark Ages?

Waiting on hold. Faxing underwriting forms. Apologizing to customers for insurance company errors. Sound familiar?

You and your staff have long accepted this conduct as status quo. Your customers did, too.

But today’s consumer expects a different experience. They demand to control their interaction with your agency on their terms, 24/7. Propelled by the Web and the power of the smartphone, consumers today expect the ability to purchase a policy, make a change to their policy and file a claim through digital means.

Several forward-thinking carriers anticipated this trend at the turn of the century and started to upgrade their technology platform. The goal: speed up transaction processing and reduce cost. But many executives complained they couldn’t fully realize the benefits of their technology improvements because agents refused to improve their technology.

Fast forward to today. Thanks to cloud computing, agile software development and the power and size of computer chips, agencies can now transform their customer experience quickly at low cost. Leading agency management systems enable reconfiguration of operations to provide an up-to-date, real-time customer experience. In one of the greatest advances for the independent agency system in years, successful insurance agencies are beginning to understand the power of today’s technology—they’re changing their business processes to provide the customer with a robust customer experience.

But unfortunately, many agencies encounter a roadblock: their carriers’ outdated, inflexible systems. This creates a competitive disadvantage for the independent agency by detracting from the customer experience. In today’s market, it’s too easy for a customer to switch. Agency owners can no longer afford to settle for a carrier’s antiquated business processes.

Here’s what to demand from your carriers:

• Customer access. Does the system allow customers to access your policy processing system from your agency website?
• Claims filing. Does the carrier’s first-notice-of-loss system alert you by email or text when a customer files a claim?
• Data analytics. Do the carrier’s data analytics tools enable you to determine which risks you should target in your local community?
• Agency management system integration. Does the carrier interface with the agency management system?
• Straight-through processing. How much do you have to work with carrier personnel to issue a policy, make policy changes and adjust a claim?

Next time you’re looking at two competitively priced quotes from two different insurers, ask yourself: Which one has the best technology interface that leverages your modern agency management system?

It’s as important a question today as the commission rate.

Brian S. Cohen is president and CEO of Strategic Growth Advisors LLC, a Los Angeles advisory firm focused on helping independent agencies and carriers accelerate their growth and improve their bottom line.