Consumer relationships with Insurance agents might be approaching change as an insurance report by Capgemini and Efma’s World Insurance has revealed a change in consumer behavior. This millennial mindset has caused consumers to feel more comfortable purchasing insurance products online without the help of an insurance agent.
Consumer Relationships With Insurance Agents Are Changing
The report puts consumers into four different categories of pioneer, inquisitive, experimental, and follower. These categories are based on different social behaviors and preferences in shopping concluding that customers are not relying exclusively on one channel in their purchasing decisions. These results conclude that consumer relationships with Insurance agents might be turning away from relying on insurance help from an agent and taking a more hands-on approach with different options available now. The report also shows that consumers are more willing to trust online research including reviews, testimonials from family and friends, as well as broker and agent advice, causing consumers to feel empowerment by making choices themselves.
Customers are Using Outside Research More
Traditionally, consumers rely on agents to help them find the best options for their current situation or the digital channel where they can simply click and buy the plan choice they’d like. According to the World insurance report 2020, this belief is ultimately a false dichotomy says Seth Rachlin, executive vice president – P&C insurance leader at Capgemini. “The fundamental message is that the two markets have become one. We are all digital,” Rachlin told Insurance Business. “Even in instances where the ultimate sale happens through the agent or broker, there’s digital activity surrounding that sale. It’s not an either/or, it’s both. The customer may be doing some research online, they may be talking to people, they may be engaging on social, and then they may end up with an agent – and that agent had better be prepared for the fact that the customer is armed with a digital experience and is expecting the benefits of that digital experience to rebound into that interaction.”
How Can Agents Compete Changing Consumers
Rachlin believes that to remain relevant to consumers agents need to be willing to do a few things. One is being approached with independent research, the need to use technology to ensure they have data in order to drive informed interactions, and finally being able to think about digital storefronts and keep them updated and connected to the market to be more efficient. By changing the mindset on how to do business, agents will still be able to satisfy current customers while also competing with other competition outlets.
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