WORCESTER, Mass., Sept. 8, 2021 /PRNewswire/ -- The State of
The Independent Insurance Agency Report, developed by The Hanover
Insurance Group, Inc. (NYSE: THG), indicates independent
agents are embracing a more progressive work environment in
response to the pandemic and evolving market conditions. With
agencies expected to offer additional employee flexibility, engage
more digitally with their customers, and enhance customer and
employee experiences, the report highlights the current state of
the industry and provides a glimpse at the future of agencies
across the country.
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"In the face of significant challenge and uncertainty, many
independent agencies have succeeded over the past 18 months, taking
away some very valuable lessons that will help them as they seek to
more effectively serve their customers and build their businesses
going forward," said Richard W.
Lavey, president, Hanover Agency Markets. "Our survey shows
customers have remained loyal to their independent agents. As
agency owners look to the future, it's more important than ever
that agents maintain strong retention, working with carriers that
can support – and continue to enhance – business models with
increased flexibility for staff and increased digital accessibility
and services to take customer and employee experiences to the next
level."
2021 State of The Independent Insurance Agency Report
- Flexibility is here to stay – 66% of agency owners state they
expect to continue working in a remote/hybrid model
- Customers remain loyal – 72% of agency owners report
experiencing increased customer retention
- Agencies are optimistic about growth – 62% of agency owners
report agency growth
"We learned a lot about independent agents over the last 18
months and the report proves the industry continues to pivot to
meet customer expectations while providing great resiliency," said
Angela Roman-Grimaldi, vice
president enterprise distribution at The Hanover. "The support of strategic carrier
partnerships with advanced technologies help agencies thoughtfully
address any obstacle customers may face. Additionally, the
independent agent model continues to thrive and innovate in a
modern working environment by being flexible with employees."
As agents seek to set their businesses apart from their
competition and agencies are expected to continue to face
challenging market conditions as they reimagine the future of their
businesses, The Hanover has
created an Independent Agent Customer Growth and Retention
Checklist to help agents build their business in the coming months.
The checklist is based on conversations with its agency partners
and its own observations of market trends, developments and
evolving agency best practices.
Independent Agent Customer Growth and Retention
Checklist
- Stay ahead of trends – COVID-19 was a reminder that
the world can change quickly. Customers continue to look for
trusted counsel who understand all the potential risks and can
offer protection if the worst occurs. Independent agents who
understand emerging risks, such as extreme weather, cyber concerns,
and workplace safety, will earn customer trust. Agents who
regularly communicate trends will find new opportunities to connect
with customers while developing stronger relationships and
uncovering potential business.
- Leverage technology – Partner with carriers that
provide agency staff and their customers omnichannel resources for
an enhanced customer experience. Online, web- and mobile-based
service tools keep today's modern customer engaged. Independent
agents need access to tools and services that help them compete in
a modern world while meeting customer expectations.
- Offer complete coverage – Consumers today need to
protect more assets than ever. Independent agents have an
opportunity to grow their business by writing the total account for
customers. Many agents are having more and more conversations with
their clients to discuss life changes and to assess evolving
needs. This practice can foster customer loyalty and help an
agency expand its business.
- Create meaningful customer touchpoints – Consumers
and businesses found new digitally-enabled ways to communicate and
stay in touch during pandemic lockdowns, and many are looking for
these digital interactions to increase. We typically see ambitious
agents encouraging customers to provide multiple points of contact
along with their preferred communication channel. Agents quickly
learned that digital channels tend to be favored and securing
customer email addresses is critical. This information enables
savvy agents to have regular customer touchpoints through the right
channels and more often. These increased communications build
strong customer relationships that last.
- Look for access to a direct underwriting model -
Whether agents are at home or in the office, they need to have
access to a direct underwriting model that enables them to build
their most profitable accounts. By partnering with carriers who
offer a direct, local underwriting model, agents can ensure they
serve their customers' needs in an efficient, timely fashion.
Underwriting helps with more complicated and complex accounts which
enables the most flexibility and choice to tailor the account to
limit customer risks.
- Retaining talent – Agents of the future want
options for where they work. Employees are looking for continued
flexibility that was offered as a result of the pandemic and
agencies that offer a combination of in-office and remote working
options will experience higher volumes of employee retention.
Hybrid models are a tactic for attracting new talent to the
industry as prospective employees realize they can experience
success from virtually anywhere. Review your benefits to make sure
they are in line with industry standards and meet employee
expectations.
The Hanover surveyed more than
500 independent insurance agency owners in connection with the
report. The company's goal was to understand the current state of
independent insurance agency operations amid the pandemic. To learn
more about The Hanover, please
click here.
About The Hanover
The
Hanover Insurance Group, Inc. is the holding company for several
property and casualty insurance companies, which together
constitute one of the largest insurance businesses in the United States. The company provides
exceptional insurance solutions through a select group of
independent agents and brokers. Together with its agent partners,
The Hanover offers standard and
specialized insurance protection for small and mid-sized
businesses, as well as for homes, automobiles, and other personal
items. For more information, please visit hanover.com.
CONTACTS:
|
|
Emily P. Trevallion
|
Kyle
Tildsley
|
etrevallion@hanover.com
|
ktildsley@hanover.com
|
508-855-3263
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508-855-3287
|
All products are underwritten by The Hanover Insurance
Company or one of its insurance company subsidiaries or affiliates
("The Hanover"). Coverage may not
be available in all jurisdictions and is subject to the company
underwriting guidelines and the issued policy. This material is
provided for informational purposes only and does not provide any
coverage. For more information about The Hanover visit our website
at www.hanover.com.
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SOURCE The Hanover Insurance Group, Inc.