New Graduates and Insurance

I just read an article recently about how new high school and college graduates look at insurance differently than we did. It's not so much about the coverages, but it's about the level and speed of information and service. The younger generation expects online functionality, the opportunity to research and buy online, and fast response to questions and inquiries.

I have a son who graduated from high school this year. His comfort level with computers and the Internet is much higher than mine. He communicates with his friends more via the Internet and Facebook than he does via telephone. He almost never watches TV. It's a fundamental shift from what we are used to.

Independent agents, as well as many insurance carriers are behind the curve when it comes to taking advantage of these shifts. It's time we take notice of the changes and start implementing plans on how to cope - by communicating more electronically, investigating the possibilities with social media, offering more functions, information and communication on our Web sites, and focusing on fast, content-rich exchange of information. The insurance agent of tomorrow will look a lot different than yesterday. We need to change our focus from process-driven to customer-driven, by listening and offering consultative and adivsory services that help our customers thrive.

Thinking that we can survive in the new millenium by continuing to offer the same level of products and services will put the independent agent in the same category of the buggy whip manufacturers of yesteryear.

One-to-One Marketing in Commercial Insurance

According to a recent article in the Marketing News, "As the recession drags on, B-to-B customers are relying more heavily on their relationships with B-to-B providers. They want more attention, and more advice than ever before. They want to do business with companies who know them and understand their needs. They want to be reassured that their purchase decisions are sound and to receive relevant offers that make their jobs easier. They want to know that they're in good hands."

Insurance agents have an incredible opportunity to provide just this type of individualized service. One-to-one marketing doesn't mean you respond when they call. It doesn't mean asking them to lunch twice a year - it means creating a meaningful dialogue with them on an ongoing basis.

The article goes on to state, "For companies with mid- to large-sized customer bases, keeping track of individual customers' needs, preferences and purchase histories can take a Herculean effort. But ever since Web-based tools and tactics found a place in marketers' toolboxes about 10 years ago, marketers have had the ability to compile more customer data, and serve more targeted messages."

Agents can cash in by segmenting customers by industry and insurance needs, developing targeted email messages, blogs, web surveys and Facebook postings, as well as utilizing conventional communication methods such as direct mail or phone calls.

Most agents are just starting to become aware of the opportunities with Web 2.0 and the advantages of working with customers one-on-one. For more help on developing and implementing a plan, contact I-Marketing Management; www.imarketingmanagement.com.

E&O Exposure - Not Communicating with Your Customers!

I recently attended a seminar on E&O Exposures for CSR's and Producers conducted by Virginia M. Bates of VMB Associates, Inc., Melrose, Mass. Virginia was a great speaker and kept the class interesting and moving along at a good pace. She covered many different types of exposures a typical agency might face, but the one that intrigued me was the one about not regularly communicating with your customers. If you don't routinely update your customers on changes in the industry, regulations, risks and exposures, or changes in your own office, you may be opening yourself up to a lawsuit. One way to help mitigate this risk is to implement a customer communication program for your agency. It's pretty easy if you have your customers' emails. And if you don't, your first communication should be to get them! Send monthly emails on subjects they would be interested in (recent COBRA changes for commercial clients, summertime risks for personal lines), quarterly e-newsletters, or printed newsletters help, too. Post a customer survey on your Web site and invite your customers to complete it. Not only will it give you some great insight into your customers' expectations, but will help to further the bond between you and them. There are lots of great ideas for building customer communications. Contact me at laurie@aartrijk.com for more suggestions. Once you get your customer communication program up and running, you'll have one less E&O exposure to worry about!