Every advantage helps in the modern insurance industry – and web-based rating systems can be a differentiator for independent agencies in appealing to consumers who want to do their own research, says Insurance Technologies Corporation president Laird Rixford.
“One of the key tenets of today’s consumer is being provided choice,” Rixford says. “[And] one of the key tenets of being an independent agent is that it allows you to have choice, to use carriers across the spectrum. The reality is that consumers are shopping online, and they’re used to buying the best-quality item … at the best price.”
Insurtech companies have invaded the industry in large part because they offer more choices through online aggregators. But agencies can do that, too. “The technology exists today – agencies can put real-time rating from multiple carriers directly on their website,” Rixford says. “And that allows them to compete with all the insurtech online aggregators and lead providers that are out there.”
By offering real-time live rating options from multiple carriers, an agency can actually enhance its sales rather than endanger them.
“It’s important that today’s agencies adopt that same technology [used by insurtech aggregators] and make sure that they use that to their fullest ability,” Rixford says. “A lot of people are researching online, and that research does include prices. Agencies should not shy away from providing prices because that’s the reality of what today’s modern consumer is looking for.”
Even after researching online, many consumers still want to deal with a broker directly to tap into their expertise, Rixford says, but only after deciding on a deal they like.
“Not many agencies are using online rating systems, and that’s a problem,” he says. “They have not embraced the internet, preferring to hold on to referral traffic, phone traffic and people coming to their office. They’re not looking to broaden their expansive reach, to reach out and find customers on ... the internet. By not having that available to their consumers, they’re missing out on a signifi cant and growing piece of the market.”
.jpg)
