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November 20, 2015 Vol. 277 No. 16
18 6 5 — 2 015
Industry Panel Deliberates on
Company-Agent Relations, Digitalization,
Technology & Consolidation
PLANTSVILLE, CONN. — Conducting business in the era of the
digital marketplace, the use of social
media, technological advancements and
consolidation were hot topics at the
Independent Insurance Agents of Connecticut’s (IIAC) mid-year convention.
IIAC Chairman Jim Suzio, CIC, moderated the panel of carrier and agency
representatives. He began by asking
panelists how insurance carriers and
agencies are working together in today’s
digital marketplace for referrals.
The Independent Insurance Agents &
Brokers of America (Big “I”) Chairman
Randy Lanoix, president of Lanoix Insurance Agency, spoke from the point
of view of the owner of a small personal lines agency in Louisiana. He
commented that he does not have the
resources to have a dedicated digital marketer on his staff, so he “leans heavily on
TrustedChoice.com to fill that gap.”
Lanoix cited a recent study that revealed
that while 75% of consumers look on
the Internet for insurance information,
80% actually buy their policies from an
agent. He noted that it is important for
agencies to have more than just their
profile on TrustedChoice.com in order
to get the best Internet leads.
John Kelly, senior vice president,
Eastern region, MAPFRE, said his company also supports social media sites. He
noted that there are any number of opportunities to obtain leads. Regardless
of how a lead comes into MAPFRE, he
said the “goal is to provide the leads to
independent agents and give them the
tools to help close sales.”
Chris Olie, president and chief executive officer, Plymouth Rock Assurance
Corporation, echoed Kelly in that his
company also has a strong social media presence, despite having a relatively
small staff. Plymouth Rock has marketers working on Twitter and Facebook,
but they haven’t “cracked the code and
turned it into a viable revenue stream.”
Olie expressed excitement about the
hybrid distribution approach that Plymouth recently unveiled with its “Prime”
product. It gives consumers the ability to buy and manage their auto policy
online while giving them the benefit
of in-person counsel through an independent agent representing multiple
insurance carriers.
“Consumers benefit from the convenience and use of the Internet and local
advocacy, advice and counsel. It’s been
successful in Mass., and we’re rolling
it out here [in Conn.]. You can quote,
bind coverage and deliver leads back to
agents for a fee,” said Olie.
Matt Nickerson, president, Safeco Insurance Company, is on the board of
TrustedChoice.com, and he noted that
making the site viable has been a “long
haul.” Nickerson said Safeco “made
the decision to invest and didn’t expect it to be a silver bullet to solve all
our problems.” He commented on how
powerful social media is. When insureds
use social media platforms, “it’s like
they are talking to tens of thousands of
neighbors” simultaneously.
The Business of Social Media
Suzio asked the panelists where social media goes from here in terms of
business applications.
“Social media is a real business tool.
We often think younger people aren’t
interested in relationships, but they’re
actually more social and interactive but
in a different way. We need to meet
them on their terms and help mine social connections in the marketplace,”
said Nickerson.
“Social media can market and target business to [help insurers] develop
campaigns that are specific to a certain
area or market to get your brand out
and have opportunities to sell policies,”
added Kelly.
Every insurer and independent insurance
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agency needs to have as robust a social
media presence as possible. “How many
agents take out ads in the Yellow Pages?
How many even have a phone book in
the office?,” joked Lanoix. It simply is
not how business is conducted anymore.
While commenting that he is part of the
“male, pale and stale generation,” Lanoix
said he understands the power of social
media to get referrals. “Facebook posts go
to everyone’s friends. If you’re not using
it, you need to be.”
Industry Response to Innovation
The insurance industry has been on
the hot seat of late, being put in the
position of having to respond to rapid technological advancements, such as
telematics, smart homes, transportation
network companies (TNCs) and other
elements of the sharing economy. With
that in mind, Suzio asked panelists if
the insurance industry was responding
to new products and innovation quickly
enough and with effective products.
Nickerson cited a recent newspaper article that noted 25% of all rides in New
York City in the third quarter of this
year were via Uber. That is a fairly sobering statistic given that the insurance
industry is still grappling with TNCs.
“I think the industry is responding faster
than ever but probably not fast enough.
The market, industry and consumers
are changing faster than they ever have.
We need to be open to change and to
tech opportunities we need to address.
They are real and in the value stream of
consumers,” said Nickerson.
Olie agreed with Nickerson, saying, “I
don’t think the industry has gone as fast
it could, but it’s gone faster than usual.
State regulation is involved, and TNCs
will still play out — possibly with national legislation.” The industry needs
to continue to evolve along with rapidly
changing technology, he noted.
“Despite the trend of safer cars, there
is always the wild card of man’s ability
to screw things up. Counteracting factors are wild cards that might work in
opportunities,” said Olie.
For Kelly, the pace of change is so fast,
“it’s hard to keep up, but we need to.
Using technology to make and sell good
products is a challenge.”
Continued Softening?
Panelists were asked to discuss a recent
headline in The Standard: P-C Insurance Market to Soften Further, Driven
by Consolidation (Nov. 6, 2015).
“Personal lines carriers get a lot of press
about the shrinking personal auto market in the future and the downward
effect on premiums in years to come. It’s
true, but it’s decades away,” said Olie.
He noted that gas prices are down, and
the economy is improving.
“The auto industry is already in decline,” said Nickerson, who noted that
autonomous vehicles will drive down
claims and premiums in the future. He
argued that consolidation is being driven by the U.S. economy. “It’s mature,
with a sizeable middle class … U.S.
personal lines grow 1% to 2% a year.
There’s so much capital looking to be
put to use … it leads to softening.”
Kelly pointed out that the severe winter weather that often hits New England
puts a strain on the homeowners line.
“We’ll try to look at homeowners product viability going forward and address
weather pattern changes. We’re hopeful
it will be a better winter this year.”
Building Relationships
Noting that independent agents are always working to win customers, Suzio
asked panelists how they differentiate themselves and win or strengthen
relationships with insureds.
Kelly explained that the founder of his
company was an independent agent
and that the insurer is committed to the
independent agent network. “We distinguish ourselves by being good business
partners with independent agents and
selling products at a competitive price.”
One of the values of independent agents
is that their ability to “explain the
difference between products.”
The insurance industry is and will always be a relationship business, said
Lanoix. “Relationships are what we talk
about day in and day out.”
Olie echoed Lanoix’s comments. “We’re
in the relationship business, and we put
service first.” But he argued that consumers have been presented with a false
choice: either use the Internet to buy insurance or go to an agent. “Consumers
want both. We’re working to deliver the
power and ease of the Internet but with
a relationship with the agent.”
“Everything we do is about building relationships,” offered Nickerson. One
specific area Safeco has addressed is investing in more dedicated underwriters.
“Customers want three things: ease,
choice and advice. Direct writers may offer ease at the point of sale but not ease
for the life of the policy. Captives offer
advice, but it’s jaded. It’s advice that suits
them,” said Nickerson. “Agents have a
significant future and message to [bring
to] the marketplace. Independent agents
are best positioned to provide ease, choice
and advice,” said Nickerson.
Worries and Concerns
“What keeps you up at night?,” Suzio asked panelists. Their answers were
quite varied.
For Kelly, it was getting young people involved in the insurance industry.
While Lanoix was worried about perpetuation planning and finding and
developing new talent, he also voiced
concern about how legislation in Washington, D.C., will affect the insurance
industry.
The sheer pace of change and being
nimble to move and change fast enough
was on Nickerson’s mind. The industry
has various disruptors. “Google is the
first but not the last,” he said.
Olie worries about proper execution.
There is a lot of “great stuff, new programs and systems and a lot of plans,
but we have to execute and do a great
■
job on all fronts.”
Reprinted by permission of Standard Publishing Corporation © 2015
2 November 20, 2015