Loyal Agents Have Big Impact On Insurance Carrier Business

Ellen Carney

Understanding agent attitudes toward their insurance carrier partners is crucial in earning independent agent loyalty—and driving sales.  Why?  Because despite predictions that direct-to-consumer insurance sales would doom the insurance agent, nearly 20 years after the advent of online insurance selling, millions of consumers and small businesses continue to rely on their local insurance agencies. Consider that when it comes to their agents, US consumers:

  • Buy from.  Even after all that money direct insurers spend on TV ads, consumers are still buying from insurance agencies. In a survey of 10,000 online Americans, we found that 84% of home insurance buyers stated that they bought from an agent; 82% did the same for their car insurance, while 57% of life insurance buyers said that they did.
  • Trust in.  When we asked in the same survey about attitudes toward financial services providers, more than 70% of life insurance buyers and about two-thirds of non-life insurance buyers we surveyed agreed with the statement “I completely trust my agent”.  And that trust runs deep for some customers, especially for 25-34 year olds we surveyed.
  • Stick with.   And after buying from an agent, consumers tend to stick with their them We asked US online adults how long they had been buying certain coverage from their agents. The average relationships with their auto, home, and life agencies were 12.9, 12.5, and 16.3 years Consumer steadfastness with an agent is often longer than that loyalty to a spouse:  the average American marriage that ends in divorce lasts eight years.  And no surprise, the tenure with direct insurers is much shorter than that with agent-centric insurers.   
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