The average age of insurance agents as of 2014 was 59, whereas the bulk of the insurance buying power is shared by Gen Xers and Millennials. This ever-widening age gap is creating serious disconnects between agency benefits and consumer expectations.
For digital pioneers and digital natives, technology use is not an option. It’s an expectation. Independent insurance agencies who want to remain competitive - or to gain a competitive advantage - need to adopt a digital approach that feels natural to their market.
It’s not necessary to automate everything to appeal to younger clientele. However, processes that can be simplified and streamlined through technology should be. According to a JD Power survey, insurance buyers who worked with agents employing emerging technology to facilitate processes have the highest levels of customer satisfaction.
While some may argue that modern media is killing meaningful communication, the truth is modern consumers are actually more in touch than ever before. Gen Xers and Millennials are both avid users of social media, email, and instant messaging, and these varied modes of communication give independent insurance agencies more ways to connect with consumers.
You don’t have to adopt every media platform to communicate with modern consumers effectively, but you should choose those platforms where your target market hangs out. Let’s face it, answering machines killed interruptive house calls decades ago, but today’s insurance agents can make more personal connections using Facebook, SMS, and similar outlets anyway.
Modern consumers have been trained by other industries to expect more than an impersonal sales pitch followed by the occasional payment reminder. They’ve come to expect relationships with providers and guidance when making tough decisions.
According to a Deloitte Consulting survey, 6 out of 10 consumers said they received no particular services from their insurance agents “beyond shopping for coverage.” While the business models of big corporate brokers and carriers may not allow for individualized attention, an independent insurance agency can and should wow consumers with quality, attentive service - and not just during the honeymoon period.
Consumer expectations and behaviors are changing as rapidly as the technologies taking insurance by storm. That puts a great deal of pressure on veteran agents to adapt. For some agents with an eye on retirement, the motivation to abandon the older familiar business models in favor of newer approaches can be low.
Pairing new talent with veteran talent is one way to narrow the adaptability gap for older agents while expanding the foundational knowledge of younger agents. Independent agencies that want to stay ahead of the adaptability gap should provide all agents with regular opportunities to educate themselves on emerging technologies, multiple modes of communication, and other modern customer service techniques.
If your agents need guidance when it comes to closing the gap between consumer expectations and agency offerings, get in touch with AgenciesOnline today.