Posted by: Billy R. Williams Ph.D. | August 15, 2015

Auto insurance disruption is coming! Are you prepared?

Auto insurance disruption! Are you prepared?

By Dr. Billy R. Williams; President – Inspire a Nation Business Mentoring (www.inspireanation.org)

The insurance marketplace will not look the same 5 years from as it does today.

New products such as Uber and driverless cars, as well as more technology-based companies and agencies entering the insurance marketplace will force existing agents and agencies to change the way they do business; Are you prepared?

While the focus of this blog post is specifically on auto insurance, all aspects of the insurance industry will be impacted. You can’t have automation and technology influence one part of the industry without it eventually influencing all of the industry.

Industry analyst predict there will be fewer initial live interactions between insurance agents and prospects, with 70% or more of the auto policies being sold in 2020 utilizing web based quote engines to quote and bind policies.

The carriers that you represent know it, that’s why they are diversifying their insurance portfolios with web based auto products and tools. They understand that they have to work smarter and not harder in order to prepare for the upcoming disruptions in the insurance industry marketplace.

As an agency mentor I constantly hear agents complain about what the carriers are doing and how it is impacting their business, but I don’t see those same agents doing very much to prepare for the new marketplace.

Ok Dr. Billy R. Williams if you are so smart why don’t you tell us what we need to do to prepare?

Well folks I have never claimed to be smart, but because of the volume of insurance companies, agents, and agencies I work with on a daily basis, I definitely have a helicopter view of the industry. Here are my suggestions:

  1. Have a good website that has the main site elements on the front page of a mobile optimized website. Don’t force people to have to click on a bunch of tabs to locate information
  • It needs to have a built in rater or at a minimum a quote form that will send back an immediate response
  • Testimonials should be prominently displayed on the front page of the site
  • One or two YouTube videos should be on the front (YouTube is the world’s 2nd biggest search engine right behind Google)
  • The wording that explains your agency should be short, to the point, and have small pictures or Gifs to grab attention. You only have a few seconds to grab the attention of a mobile user so your site should look interactive

2.  Make sure you have a good online presence that shows your expertise.

  • What you say to one prospect or customer, you should be able to say to 1000 people online by using blogs, press releases, social networking, and forums. Remember you are competing with internet based tools and competitors, just like they find your competition online, prospects should be able to find your business online.
  • Register with as many local and national online directories as possible such as yellowpages.com, manta.com, and citysearch.com. Use a special email address such as subscriptions@Gmail.com because you’re going to receive a lot of email from the various directories once you register, however the online presence and influence of the directories is worth it.

3.  Build your referral networks

  • While search engines and directories are the front line in your battle for your online presence, you still need people driving other people to your business, to your site, to your social networking profiles, and to your blog post. Social networking tools have made it easier to build online referral networks as well as offline referral networks. You should connect with the minimum of two possible referral partners online each week.
  • Don’t just rely on social networks to connect with local businesses, get out of your chair and actually go out and knock on a few doors, and hand out a few brochures, just make sure your brochures have your online tools prominently displayed.

4.  Beef up your automation and technology

  • Tools such as automated email responses, online raters, database and agency management systems, and lead management tools must be an important part of your agency tool bag. Customers and prospects want it fast, easy, and accurate. If you are the kind of agency that it takes two days for me to get an accurate auto quote from you, you’re probably not going to get my business.
  • Technology such as text messaging, online chat tools, and mobile apps have to become an important part of your agency. This is how your customers and prospects are communicating, and how they want to communicate with you.

On the surface the recommendations that I just made could seem overwhelming, but if you implement a few small steps weekly, before you know it you’ll be a much better place than you were before you read this article.

Who are we? We are Inspire a Nation Business Mentoring www.inspireanation.org

We provide strategic mentoring on all areas of running an insurance agency including: 

  • Marketing – on-line and off-line
  • Sales and Service
  • Retention,
  • Technology/Automation,
  • Staffing – prospecting for staff, interviewing, on-boarding, compensation, staff development and training,
  • Tracking Tools and Procedures
  • Leadership Development

Take a quick peek at our membership programs and pricing


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