According to a 2023 survey conducted by Trusted Choice, a national marketing network for independent insurance agents, 70% of insurance consumers are shopping their insurance policies to find better pricing. Insurance is a dynamic and complex industry, and independent insurance agents are uniquely qualified to assist consumers in this challenging market. These trained and skilled agents can maneuver the ins and outs of the industry on behalf of the consumers, taking the guesswork out of the process.
[Figure 1](www.trustedchoice.com, 2024)
1. Advantage of Multiple Insurance Companies
Unlike captive agents who represent individual companies like State Farm or GEICO, independent insurance agents work with multiple insurance companies. This provides consumers with the unique opportunity to shop numerous insurers at the same time without doing all the work themselves or endlessly calling around. The advantage here lies in price and coverage opportunities. Independent agents can search multiple offers of coverage and shop for the best prices for each consumer. While coverage selections are similar between companies for property and casualty insurance in the State of Florida, discounts, underwriting, and acceptability of risks can differ greatly. For example, some companies offer discounts for education, occupation, and mileage use, while others offer discounts for military and age. Representing multiple insurance companies allows agents to ensure consumers are maximizing offers specific to their situation to find the best value for their purchase.
2. Benefit of the Human Element
As Insurtech and artificial intelligence advance in the insurance industry with service innovations and technology disruptions, the human element for the insurance consumer remains extremely valuable. Utilizing AI can provide speed and convenience, but it can also cause missed opportunities based on the specific needs and circumstances of each individual, family, or business. Additionally, consumers can experience personalized service from an agent they know and trust, unlike with direct phone or online purchases.
When making an insurance purchase with a “15 minutes or less can save you money” company, after going through call prompts, sitting on hold, and finally reaching a live person, an insurance purchase can be made. However, it is unlikely that you will ever speak with that same agent again. Recent studies and consumer opinion surveys have shown a rise in consumers’ preference for human interaction with their insurance processes compared to previous years. This further acknowledges the concept that while bots and AI chats are helpful, the “human” agent is still a critical element for consumers.
3. Interpreting Policy Language (So You Don’t Have To)
Ever tried to read an insurance policy? All 20+ pages of small print typically provided at the time of purchase? Even if consumers could make it through page after page of “policy language,” would it be comprehensible to the average individual? It is the job of an independent insurance agent to understand and interpret this complex verbiage and apply that knowledge to make appropriate recommendations for coverage to consumers.
Specific clients have specific needs. When that situation arises, for example with high-net-worth clients, the expertise and access to markets offered by independent agents provide unmatched value. Building relationships and understanding the needs of clients with one-to-one interaction allows agents to make targeted recommendations versus issuing blanket policies that often have coverage inadequacies.
4. Education
Florida general lines insurance agents are required to complete a 200-hour course in property and casualty insurance followed by 24 hours of continuing education due bi-annually. In addition to state-regulated licensing and education, insurance companies require training for agents to have access to their insurance products. The ever-evolving industry encourages and requires agents to stay dedicated to a continuous learning process. Independent insurance agents, when properly educated, add tremendous value to the insurance purchasing experience. Relying on their knowledge and expertise to guide the process is invaluable.
5. Members of the Community
Networking and community involvement are at the center of any successful independent agent’s business model. This passion drives agents to grow and build relationships within the communities they serve, which in turn offers value and benefits to local community members as consumers. By selecting to do business with a local agent, that value grows tremendously. Truly understanding the insurance needs of a consumer takes more than just asking a few questions. It involves understanding the situation, environment, and risks specific to each insured. Seeing the full picture is critical to recommending the necessary insurance products. Local independent agents are not just professionals sitting in an office space; they are community leaders and volunteers, members of local organizations, neighbors, and consumers in the same geographic location that they service. These agents have a unique advantage in building relationships with individuals and businesses that bring benefits to all parties.
Along with other professional industries, the insurance purchase process is complex and time-consuming. By placing trust in an educated and experienced independent insurance agent, consumers can be confident they are getting the best value to fulfill their insurance needs while building mutually beneficial relationships with local members of their communities.
References:
- Boone, E. (2021, March 31). A passion for community service. The Rough Notes Company Inc. Link
- Jacobson, J. (2023, August 21). Private clients need more than the standard coverage – from baseball cards, sneakers, jewelry, cyber and more. Insurance Journal. Link
- Lichtenstein, E. (2023, September 18). With the rise of AI in insurance, the human element is more important than ever. Insurance Journal. Link
- Resident General Lines License. (n.d.). Link
- Saldanha, K., & Staehle, T. (2021). Guide insurance customers to safety and well-being. Accenture.com. Link
- Trusted Choice Brand Resources. Trusted Choice. (n.d.). Link
