We could see the writing on the wall. People are becoming extremely frustrated buying insurance from their local agent. Most agencies are open only during the day and they keep your policy information locked down like Fort Knox. Why? Most agents require that you come in to their office to listen to their sales pitch and sign applications. Why? Most agencies have very basic websites that bring no value to their customers. Why? In a world where every other business is focused on technology why did we never catch up?
Many insurance companies are now exploiting how vulnerable the traditional agency model is becoming. Why pay agents when we can do a better job selling insurance direct to the consumer? That is a question GEICO, Progressive and several other companies have answered in a big way. GEICO alone spends almost a billion dollars a year on advertising. Progressive is now the largest truck insurer in the United States. Why do insurance carriers even need a local agent?
So, it sounds like the agency model is going to collapse soon, right? Wrong! In fact, we’re betting everything on it. The insurance agencies that choose to embrace technology can and will create a customer experience better than anyone else.
My partner and I left a large national brokerage and launched what we believe is the future of the independent agency. We left because we could see the writing on the wall for the old way of doing things, and the huge potential that exists for agencies that are willing to adapt to their customer’s expectations. We can offer our customers everything that they can get from a direct writer and still provide personalized professional service and advice from someone they know and trust.
Coverage Direct is different from most agencies and here’s why:
• You can contact Coverage Direct by text message, online chat, phone or email. Our clients choose what form of communication that works best for them.
• You can get an online quote indication from our website in less than five minutes any time of day or night.
• Our mobile app gives you instant access to your auto ID cards, helps you create a home inventory and helps you create an accident report if you should have a claim
• Our client center provides online access to policy documents and the ability to request policy changes.
• Our website and social media channels have blogs and videos that allow us to educate and engage our customers
• We are a full disclosure agency. Our clients know what they pay their attorney, their CPA, why not their insurance guy? Every client will know exactly what they are paying us to place their insurance. We believe it builds trust with our clients and holds us accountable to live up to the promises we make when working with them.
• We utilize electronic signature so the entire buying process can be done online. We live in a busy world, electronic signature is just one more service we offer that will create value and convenience for our clients.
The insurance industry is going to continue to change rapidly. The average age of an insurance agent is 59 years old. The time is now for agents embrace technology and start providing the service and tools that consumers expect and deserve. Those that choose to not adapt will fall to the wayside and be overtaken by those who do. Here’s the best part though, we don’t want to do this alone. We want more agencies to catch up. It’s what’s best for us, our industry, and most important it’s what our clients deserve.