Archives for study

Nice One Story HouseGlobal management consulting firm Accenture recently released the results of a survey of US auto and home insurance buyers. The study included over 2,036 responses from a representative sample of home insurance purchasers, and the results are good news for agents:

  • Seventy-six percent of consumers express a preference for setting up and paying for their auto and home insurance policies in person with an agent.
  • Fifty-two percent of consumers prefer to obtain a quote either over the phone or in person.

Other important findings include:

  • Twenty-six percent of survey respondents planned to at least consider an alternative at their net renewal.
  • Fifty-four percent of customers realize that there are meaningful differences between different companies’ policies.
  • Thirty-eight percent of consumers are willing to pay for personalized insurance advice – and of those, fifty-six percent are willing to pay at least ten percent more.

The study also found these preferences held solid across all age groups. As Accenture managing director Erik J. Sandquist said, “Our survey reveals that many young consumers desire personalized advice and are willing to pay more for it – and a significant percentage prefers to obtain their quotes face-to-face.”

So even after billions of advertising dollars have been spent trying to convince customers to go direct, a strong majority still realize that a good agent is key to making sure their coverage truly meets their needs.

The results are a particularly strong vote of confidence for agents considering that the study was conducted entirely online.

At iMGA we’re proud to work with great agents all over Texas who are experts in personal property insurance, and we’re very glad this study shows that consumers also recognize their value.

Home and AutoDeloitte Consulting has released a new study of auto and home insurance policyholders and the results are significant for independent agents.

The online study of 1,080 each auto and home policyholders, titled “The Voice of the Personal Lines Consumer/Buyers in the driver’s seat”, reaches several relevant conclusions:

“there is a sizable group of consumers who still prefer the human touch in personal lines, choosing to establish a trusted relationship with an insurance professional who can help them shop for a policy (sometimes for more than one type of coverage) as well as show them how to navigate the claims process and be their advocate in case of a loss”

“fewer companies are dedicated to distributing through any one channel. Many are looking to reach prospects and more regularly communicate with policy- holders over multiple platforms, both to take business away from competitors as well as improve retention of their own customers”

“there are demographic factors at work that make some prospects more viable than others in terms of taking them away from the competition”

“while some respondents are committed to buying with an intermediary and others without, there is a significant percentage of “independents” that are more open to switching from agents to a direct purchase (or vice versa) given the right circumstances and enticements”

“overcoming suspicions about the integrity of insurers and agents can play a major role in drawing prospects away from rival carriers and channels”

“Price remains the biggest single element respondents consider when purchasing personal lines insurance. However… price is far from the sole decision point when a prospect is determining whether to become (or remain) a policyholder”

If you think your agency is “destined” to lose clients to direct sales, never to retrieve them again – that is definitely not true, especially if you offer homeowners insurance products. 39% of homeowners currently buying direct said their top preference the next time they buy a new policy is to work with an agent. The same was true with 30% of direct auto policy holders.

Homeowners Clients are Better

55% of homeowners who responded to the survey had been with their insurance agent for at least 6 years. Only 49% of auto insurance customers said the same.

Home policy owners are:

  • Less likely to think buying direct would save them money (59% for homeowners vs. 67% for auto customers)
  • Less likely to strongly agree that buying direct would be more convenient (29% vs. 33%)
  • Less likely to consider price extremely influential in their decision (45% vs. 54%)
  • Less likely to switch agencies (only 20% had been with their agency two years or less and many of those were younger consumers who had been purchasing homeowners coverage for a shorter period of time)

With all those great characteristics, it’s clear agencies need to attract homeowners policyholders as much as possible.

What’s the most important step in doing that, according to the survey?

Get Homeowners Policyholders as Young as Possible

Nearly half (45%) of homeowners said they had never switched carriers. So being there first made a huge difference to their agent and/or carrier.

iMGA products let you bring in homeowners clients that are buying their first home or mobilehome. Even before that you can offer your clients a renter’s policy through iMGA. Later if they purchase a rental dwelling or vacant dwelling, we can help you protect that for them also. Together we can help you build a book of quality homeowners clients that will make your agency more successful in the long run.

Higher retention, less price sensitivity, more appreciation for the value agents bring. Who wouldn’t want that? iMGA – and a focus on providing quality homeowners protection to your clients – can make that a reality in your agency.

Daniel Schwarcz, a University of Minnesota Law School associate professor and the author of an 88-page study scheduled to be published early next year in the University of Chicago Law Review, says homeowners policies differ “radically with respect to numerous important coverage provisions.”

Professor Schwarcz found that “all five companies with substantially less generous policies” use captive agents (like State Farm, Allstate and Farmers) but “two of the three carriers providing the most generous policy forms use independent agents”.

The study concluded that consumers are most likely to be harmed by potential differences in homeowners coverage “if those consumers do not have access to an intermediary that is informed about these differences.”  Also that “Captive agents… are substantially more likely than independent agents” to be unable or unwilling to offer consumers coverage alternatives.

In other words, it’s really important to have a good independent agent.

At iMGA we couldn’t agree more. We’re proud to offer fantastic coverage options most companies don’t, but that’s not helpful without great independent agents who care enough about their clients to make sure those clients are well covered.

Fortunately we have those – spread all over Texas.

Consumers: Find a great agent to work with on insurance for you home or rental dwelling.

Agents: Work with a company that appreciates the value you bring to your clients.

↑ Top of Page