Shifting Distribution Requirements Challenge Agency-Carrier Connectivity Status Quo

By Karen Pauli

Boston, MA (Dec. 14, 2016) – Strategy Meets Action (SMA), a leading insurance strategic advisory firm, has just released a new research report – Agency-Carrier Connectivity: Agent View. The report covers the business drivers, current state, future plans and projects, challenges, and investments that agents and brokers are making regarding agent-carrier connectivity.

“Insurance agency automation has been the subject of tens of thousands of articles and studies,” said Karen Pauli, SMA Principal, and report author. “More recently, the discussions are about whether agents and brokers will survive InsurTech and even whether an individual insurance advisor is relevant anymore. Fundamentally, it all comes down to what the consumer wants. It is a pivotal time for agents and brokers in terms of executing an effective connectivity capability.”

Key themes of the research include:

  • Agents need to establish consultative relationships with insurers and agency management system vendors as well as educational institutions to address technology development.
  • 63% of agents are either not investing at all or are mainstreamers that are not investing for differentiation and risk being left perilously behind by agents who are investing.
  • Agents express relatively low satisfaction with upload and download, which is a disconnect with over 50% of personal lines insurers that believe needs are being met.
  • Agents indicate their number one priority is being responsive to current customers, yet spending is weighted to new business quote. The report offers an SMA Call to Action to help agents and the insurers that depend on them to shift to an innovation strategy to meet the challenges of a changing distribution landscape.

Investing in connectivity technology for differentiation is a priority for only a little over half of the insurer respondents. The report offers an SMA Call to Action to help insurers shift to an innovation strategy to meet the challenges from the emerging competition.

Top business drivers for investments in agency-carrier connectivity

Insurers, agencies, solution providers, and media that are interested in learning more should contact Karen Pauli at kpauli@strategymeetsaction.com or 774.462.7820.

About SMA

Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com or visit the SMA Blog.

SOURCE: Strategy Meets Action (SMA blog)