Insurance Agent Professional Liability: Recognizing Agency Challenges
Getting new customers to choose your company for their business insurance, health insurance, auto insurance, etc. isn’t as easy as it may have been in the past. Marketing solutions require more than just persuading them, and follow-up has become increasingly important, especially with the increase of technologies such as online reviews and social media sharing. Below are some of the challenges currently facing insurance agents.
Changing Demographics. The number of single parent households has more than doubled since the early 1970s, with more women making insurance decisions than ever before, according to PwC. Also, people are waiting longer to get married, and this affects their need for life insurance policies.
Changing Healthcare Laws. There has understandably been some confusion as healthcare laws go through drastic changes due to the Affordable Care Act. This affects the insurance business as you try to explain what actions new clients need to take to get or keep their coverage.
Acquisition Cost. For a small agency or an independent agent, the cost of marketing to find new high-quality customers poses a challenge. The internet in combination with strong competitions makes it easier than ever for your potential clients to price shop, forcing customer loyalty to take a back seat to price.
Delivery of Messages. Finding new ways to get your message to clients can be difficult, but it’s thought that going digital can help eliminate the number or cancellations that occur when print statements and/or newsletters are used. Part of the reason for this is the lag time between receiving the invoice and making a payment gives customers too much time to either request revisions to their policy or cancel their policy all together, both costly processes for your agency.
Overall, the challenge that insurance agents and agencies face is improving the customer’s experience, starting with the first time they begin pricing policies at your agency and continuing each time you send a statement.
At PLRisk, we understand the unique needs of Insurance Agencies and Independent Agents. We are a leading wholesale insurance brokerage covering the Professional Liability market. Please contact us today at (855) 403-5982 to learn more about our products and how we can help you and your clients.