US:COVID-19 accelerates shift from agents
An increasing number of US consumers are shifting away from traditional agents for their general insurance needs since COVID-19, according to a recent study by J.D Power.
The study has revealed that customers are redefining their expectations for their insurers and direct-to-consumer companies have been quicker to respond.
‘The US Independent Agent Performance and Satisfaction Study’, which was developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), found that “misalignment and poor execution continue to place agent-based insurers on their heels in their ongoing battle with direct-to-consumer insurers as the channel of choice among modern property and casualty insurance consumers.”
The study found 36% of agents say they were unaware of their insurers’ efforts during the pandemic. About four in 10 agent customers were contacted during the crisis, while slightly more than half of direct customers said the same. This is the third edition of the US Independent Agent Performance and Satisfaction Study, which evaluates the evolving role of independent agents in P&C insurance distribution, general business outlook, management strategy and overall satisfaction with US insurers. More than 1,800 agents were surveyed.
J. D Power head of property and casualty insurance intelligence Tom Super said, “The effects of COVID-19 have highlighted the importance of personalised insurance as consumers seek help navigating their way through this period.”
He added, “Ironically, in many instances it was direct-based insurers, which have made a concerted effort in recent years to emulate the high-touch and high-quality agent experience, that were able to step up and deliver during this crisis.
“The independent agent channel should use this as a learning experience and redouble efforts toward improved alignment, execution and efficiency to drive more beneficial customer outcomes,” he said.
Source: Asia Insurance Review
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