Deloitte, National Underwriter Survey Finds True Partnership Among Insurance
Carriers, Property & Casualty Agents, Brokers Remains Elusive
Agents and Brokers Generally Satisfied With Carrier Relationships, More
Consultation on Strategic Issues Desired
NEW YORK, Nov. 10 /PRNewswire/ -- The much touted partnership between
insurance carriers and their agents and brokers does not facilitate enough
open communication and input on strategic business activities, according to a
new survey of property and casualty agents and brokers by Deloitte and
National Underwriter magazine.
Results of the Producer Satisfaction Survey, released today, found that the
more frequently carriers sought input from producers about strategic business
activities, the more satisfied the producers are with the carriers.
Yet, the survey indicates that carriers do not routinely seek input from
agents and brokers, with only an average of 10 percent of respondents saying
they are consulted "often" by carriers on matters including marketing, product
development, technology, claims and distribution.
"Carriers need to develop an agent-centric approach that views producers as
true business partners in co-creation of value. This may require a change in
mindset from the carriers' perspective, both in terms of seeking agents' input
on business activities and then actually processing and understanding what is
important to the agents," said Rebecca Amoroso, leader of Deloitte's U.S.
Insurance practice.
Amoroso added, "Designing a relationship strategy that will accomplish this,
and actively involving agents in strategic business activities, actually
offers a true competitive advantage to the carriers that execute first. By
creating an 'agency experience' similar to the customer experience -- and then
customizing it to unlock further value -- the carrier can fulfill agents'
needs while gleaning the kind of insight that can act as a strategic catalyst
for growth at the carrier level."
Sam Friedman, editor in chief, National Underwriter, stated: "Insurers often
talk a good game when it comes to being a partner with the independent agents
and brokers who sell their products and services. But, to really walk the
walk, carriers must get distributors of all sizes more closely involved with
branding, marketing, pricing and service issues, not only for their own mutual
benefit, but for the benefit of their clients."
The July 2009 survey of 1,596 qualified agents and brokers focused on gauging
which agency experience attributes, and related products and services, are
most important to producers; measuring producer satisfaction; and determining
what priorities and concerns producers would concentrate on over the next 12
months. Key findings include:
Agency Experience Attributes
-- More than 60 percent of respondents found products and coverage,
claims
handling and policy pricing very important
-- Between 40 and 60 percent of respondents found financial strength,
overall relationship and business support, and technology very
important
-- Less than 40 percent of respondents found compensation in terms of
fees
and commissions, carrier brand and reputation, and risk and loss
control
services very important
-- 80 percent or more of respondents are satisfied or very satisfied with
carrier financial strength, products and coverage, overall
relationship
and business support, brand and reputation, claims handling and policy
pricing; less than 33 percent were very satisfied
Measuring Producer Satisfaction
-- 24 percent of respondents from large agencies were consulted by
carriers
often on marketing initiatives versus 10 percent of respondents from
small agencies
-- 22 percent of respondents from large agencies were consulted by
carriers
often on product development versus 6 percent of respondents from
small
agencies
-- Only 7 percent of respondents from large agencies were never consulted
by carriers on claims handling versus 30 percent of respondents from
small agencies
Producer Priorities and Concerns
-- 89 percent of respondents expect existing policy holders to comparison
shop
-- 79 percent of respondents expect policy holders to assume more risks
to
reduce their premiums
-- 79 percent of respondents expect policy holders to cancel policies due
to economic pressures
A copy of the survey is available on National Underwriter's website at
www.property-casualty.com.
About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services
LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a
detailed description of the legal structure of Deloitte LLP and its
subsidiaries.
About National Underwriter
National Underwriter Property & Casualty, published by Summit Business Media,
is the only weekly magazine serving the entire property and casualty insurance
industry. While primarily focusing on the commercial insurance business,
National Underwriter P&C covers critical developments affecting the buyers,
sellers and manufacturers of insurance products and related services. National
Underwriter has the highest circulation of any magazine covering the P&C
insurance market with a total qualified circulation of 75,129 (BPA June 2009
audit statement). More importantly, National Underwriter is a leader in
reaching the decision-makers in the three key audience segments -
agents/brokers, insurance company executives and corporate risk managers.
Contact:
Elizabeth Fogerty Elizabeth Cheek
Public Relations Hill & Knowlton
Deloitte +1 212 885 0682
+1 212 436 7179 Elizabeth.cheek@hillandknowlton.com
efogerty@deloitte.com
SOURCE Deloitte
Elizabeth Fogerty, Public Relations, Deloitte, +1-212-436-7179,
efogerty@deloitte.com; or Elizabeth Cheek, Hill & Knowlton, +1-212-885-0682,
Elizabeth.cheek@hillandknowlton.com
