ANNUAL AGENCY-INSURER CONNECTIVITY REPORT
2020 Digital Connectivity Technology Adoption Survey: 6 Key Insights
Insurers would get more business from agency partners
by doing this.
1
Insurers would get more business from agency partners by doing this.
On a scale of 1 to 10, 71% of agencies ranked automated interface with insurer partners either a 9 or 10, reaching the highest ranking for automated interface demand in the past six years. Alternatively, only 47% of insurers gave it the same level of importance. Of note is the fact that 84% of agencies said they place more business with insurers that provide automation. Among the key benefits agencies experience from working with insurers that offer automation are time savings (88%); ease of doing business (79%); and ability to serve clients faster (78%). Insurers offering full-service connectivity are seeing results. 78% of insurers believe they are maximizing written premium when they digitally collaborate across all capabilities: marketing commercial risks, quoting, processing submissions, and servicing.
Complete connectivity between agencies and insurers pays off
Find out more
2
Find out more
When it comes to personal lines quoting, this is the name
of the game.
3
Find out more
The industry continues to look for markets in all the wrong places.
4
Find out more
The way this is being done versus how it should be done leaves
a lot to be desired.
5
Find out more
There is too much overhead associated with this process.
6
Find out more
This is one area agencies and insurers are starting to
align on better.
1
Agencies clearly prefer working with insurers that offer automated connectivity. Given the events of 2020, this fact is probably truer than ever before. Unsurprisingly, COVID-19 has hastened the shift by companies toward interacting with customers through digital channels.* Affirming this point is that this year, more agencies cited ability to serve clients faster rather than productivity as one of the top benefits of working with insurers that offer automation. Taking into account the operational impact of the pandemic, the preference agencies have for insurers that offer digital connectivity, and the reality that insurers get more business when they automate interface, it’s the perfect time for agencies and insurers to align their connectivity strategies.
No time like the present to build and execute a digital strategy +
How important is automated interface?
Next-step tech +
Agencies: Increase digital connectivity with insurers to expand into new markets and provide 24/7 service your customers not only demand but require in today’s new normal. Using a real-time search tool for commercial insurance results in better targeted marketing submissions. Bringing quoting workflow directly into the management system eliminates manual, time-consuming work while providing a simple, digital application process. Exchanging policy-related information digitally from insurers increases ease of doing business and improves the customer experience by providing critical insurance information in a fast, electronic way.
Insurers: Increase digital connectivity with agencies to expand your distribution channel and increase policyholder satisfaction and retention. By connecting to agents through integrated digital channels, you can build omnichannel distribution strategies and drive profitable premium growth in the digital future of insurance.
Next-step tech
No time like the present to build and execute a digital strategy
You place more business with those insurers
that provide automation.
What are some of the benefits of selecting an insurer
that offers automation?
About the Survey
2700 independent agencies, MGAs and insurers across the U.S. and Canada participated in the Annual IVANS Digital Connectivity Technology Adoption Survey, from which the results of this report were generated. Respondents voluntarily participated in an online survey conducted in Q3 2020. The findings are based on responses to a set of questions about agency and insurer digital technology use.
Role at Organization
Agency Size
Type of Organization
Independent Agent/Broker:
MGA/Wholesaler/
Program Business:
Insurer:
Other:
74%
2%
17%
7%
Number of Employees
1-9:
10-24:
25-49:
50-74:
75-99:
100+:
33%
27%
15%
7%
4%
13%
15%
27%
12%
4%
3%
10%
16%
1%
11%
About the Survey
Agency
Administration:
Customer Service:
Executive:
IT:
Marketing:
Operations:
Sales:
Underwriting:
Other:
6%
14%
12%
13%
6%
17%
14%
12%
7%
Insurer
Administration:
Customer Service:
Executive:
IT:
Marketing:
Operations:
Sales:
Underwriting:
Other:
10%
5%
33%
10%
5%
10%
0%
14%
14%
MGA
Administration:
Customer Service:
Executive:
IT:
Marketing:
Operations:
Sales:
Underwriting:
Other:
Do you believe you are maximizing the written premium
you could be getting from current appointed agencies?
What methods do you currently use to receive personal lines quotes from your agents?
Why do you prefer to quote directly from your
management system?
What would be your preferred method to quote
a personal lines policy?
The method that I use most to quote a personal lines policy is:
Next-step tech +
Meeting agencies where they work is a win-win +
Even though 48% of agencies said they use comparative raters the most to quote personal lines policies, nearly 75% would prefer to have PL quoting capability directly integrated into the agency management system. A majority of insurers on the other hand, report using their own portals (62%) or email to underwriters (39%) to receive personal lines quotes from agencies. For agencies, the top benefits of using a comparative rater are quoting more insurers per customer (37%); responding to customers more quickly (27%); and providing more accurate quotes to customers (26%).
Agents want speed and convenience when quoting personal lines
When it comes to personal lines quoting, this is the name of the game.
Agencies: Streamline quoting for new business and the remarketing of existing polices by working with insurers that support integrated rating technology, which quickly and accurately exchanges quote information between their systems and your management system.
Insurers: Quote your products to the largest network of independent agencies. Expand distribution with rating technology that empowers you to quote through multiple online and integrated channels. By connecting directly to agencies’ management systems and comparative raters, you’ll eliminate time and expense spent configuring, managing and maintaining multiple connections in separate systems and increase ease of doing business with your agency partners.
Next-step tech
For agencies, using multiple, disparate systems and methods to quote personal lines business is time-consuming, inconvenient and stifles their ability to deliver an exceptional customer experience. When agencies can quote directly from their management systems, they benefit from increased productivity and faster, more accurate quoting. Insurers that offer integrated quoting directly to management systems see more personal lines business come their way since agencies are more likely to give personal lines business to those insurers that quote the fastest.
Meeting agencies where they work is a win-win
2
Does your company currently send Claims information directly into your agency partners’ management systems via download?
Does your company currently automatically send documents and messages directly into your agency partners’ management systems via eDocs & Messages download?
What are some of the benefits of automating data exchange with your agency partners?
What is your agency’s preferred method for accessing your clients’ policy information?
Next-step tech +
It’s just a matter of time +
Use of eDocs and Messages download by agencies remains high (69%). For insurers, 65% report sending eDocs and Messages directly to agency partners’ management systems – a 19% increase year over year. With respect to Claims download, 60% of agencies report using this type of download. For insurers, 59% report sending Claims information directly to agency partners’ management systems – a staggering 110% increase compared to 2019. Of the insurers sending both Claims and eDocs & Messages download to agencies, 54% believe they are maximizing the written premium they receive from appointed agencies.
Automated download servicing technology use shows continued signs of improvement
This is one area agencies and insurers are starting
to align on better.
Agencies: Use online tools that provide an easier way to track current and new download connections to increase agency-insurer connectivity. You’ll get a comprehensive view of current and potential download activity, as well as have a channel to communicate desired download connections and download quality feedback to your insurer partners. These tools are complimentary for agencies and easy to get going on right away.
Insurers: Take advantage of cloud-based data exchange software that delivers the latest policy-related information from your systems directly into agency partners’ management systems, ensuring that current, accurate information is instantly available for everyone throughout underwriting and servicing. Using a single end-to-end application, you can manage download across every stage of the policy lifecycle – binding, claims, first notice of loss, and renewals – as well as across major lines of both personal and commercial lines of business.
Next-step tech
Gone are the days of mailed or faxed policy details to be scanned into agencies’ management systems and then filed away. The industry is pushing to be paperless, and data shows that insurers and agencies are adopting the technologies to automate this information exchange between their systems of record. The main benefit? Time savings. Agencies save approximately two hours of time per employee per day by using automated information exchange technologies like download. In addition to time savings, insurers that rely on download to distribute policy information find it easier to do business with agencies and faster to service insureds resulting in more premium growth.
It’s just a matter of time
It would be useful to receive submissions in a digital way so
we can reply more rapidly.
My company spends too much time on administrative/data entry tasks in order to process a commercial submission.
What percentage of commercial submissions are declined
and not quoted?
What is the average cost for your organization to process
a submission?
Next-step tech +
Digitizing the commercial lines process results in significant speed and cost savings +
The average cost for insurers to process a submission is $2,776 . Moreover, 39% of insurers report that 26-50% of commercial submissions are ultimately declined or not quoted. To process a commercial submission, 56% of insurers said they spend too much time on administrative tasks, which also has bottom line expense impacts. Unsurprisingly, nearly 90% of insurers believe it would be useful to receive submissions in a more digital way so they can reply more quickly. This would be well received by agencies because 77% said they would give more business to insurers who quote the fastest.
Commercial lines overhead is weighing insurers down
There is too much overhead associated with this process.
Agencies: Turn the traditionally cumbersome insurance application into a simple, Turbo-Tax like experience. Digitize the process for new applications and renewals to make it fast, collaborative and easy. Not only will you save your clients and agency time and money, you can minimize E&O exposure, increase productivity, win more business, and make customers happier.
Insurers: Today’s manual management of submissions is weighed down by lengthy paper-based applications and supplemental forms. The back and forth between insureds, agents and underwriters is time intensive and riddled with potential errors. By digitizing the end-to-end commercial lines process, you can more quickly and easily market appetite directly to agencies and automate submissions data exchange between your system and agencies’ management systems to lower cycle times and increase win rates.
Next-step tech
Traditionally, managing the submissions process involved in-person meetings, faxes, mailed-in documents, and a litany of back-and-forth emails. The 2020 pandemic made this inefficient and cost-laden process even more obvious. By eliminating time spent manually pushing paper, insurers can reduce overhead costs while increasing speed to market. Agency staff previously weighed-down by administrative tasks can instead turn their focus to bringing in new business more quickly and retaining current customers.
Digitizing the commercial lines process results in significant speed and cost savings
5
Insurers’ preferred method to receive a commercial lines quote:
Preferred method to quote commercial lines compared to most commonly used method:
The method I use most to quote a commercial lines policy is:
The method I use most to collect data from insureds during the application process is:
Next-step tech +
Now’s the time to fix this broken process once and for all +
The predominant ways agencies collect data from insureds during the application process are by phone calls (46%) and email (38%). When it comes time to submit the quote, the method used most often by agencies is via insurer portals (59%) followed by emailing a PDF submission to an underwriter (28%), which is echoed by insurers. Comparing the method preferred to quote to the method most commonly used, nearly 50% of agencies prefer to begin the process in the management system, get a quote, and then launch into an insurer portal. However, the method agencies most commonly use is visiting numerous individual insurer portals. Unsurprisingly, the method insurers prefer to receive a quote is via the insurer portal.
There’s room for improvement in the commercial lines application and submissions process
The way this is being done versus how it should be done leaves a lot to be desired.
Agencies: Turn the traditionally cumbersome insurance application into a simple, Turbo-Tax like experience. Digitize the process for new applications and renewals to make it fast, collaborative and easy. Not only will you save your clients and agency time and money, you can minimize E&O exposure, increase productivity, win more business, and make customers happier.
Insurers: Today’s manual management of submissions is weighed down by lengthy paper-based applications and supplemental forms. The back and forth between insureds, agents and underwriters is time intensive and riddled with the potential for errors. By digitizing the end-to-end commercial lines process, you can more quickly and easily market appetite directly to agencies and automate submissions data exchange between your system and agencies’ management systems to lower cycle times and increase win rates.
Next-step tech
For both agencies and insurers, the heavy lift of data collection and transmission is one of the largest challenges in the customer experience. Today the interaction takes days, even weeks. By digitizing the application process and collaborating online, this exchange could be hours or minutes. The result is speeding up the entire channel by having a more efficient powerful digital workflow. By taking a lot of the work load off agencies’ and insurers’ plates by automating the process, more time can be spent creating a frictionless customer experience.
Now’s the time to fix this broken process once and for all
4
I give more of my personal lines business to insurers
who get me quotes the fastest:
What is the greatest benefit of being able to easily find insurers for commercial insurance risks via a digital platform?
Do you believe you would write more business with insurers if they provided real-time appetite within your management system?
I sometimes cannot win an opportunity because I cannot find
or access a market that will quote the risk.
What methods do you currently use to market risks?
What method do you generally use to find insurers
for a commercial insurance risk?
Next-step tech +
Find your match faster to write the most profitable business +
The ways in which agencies find markets are calling an insurer market rep (55%), visiting insurer websites (41%), using appetite guides (32%) and asking colleagues (31%). For insurers, common methods used to market risks are agency visits (43%), website appetite guides (36%) and outbound calls/emails (32%). Unfortunately, nearly 70% of agencies said they often lose opportunities because they cannot find a market to quote the risks. However if insurers provided real-time appetite within management systems, 85% of agencies believe they would write more business.
Relationships remain king when it comes to finding markets
The industry continues to look for markets
in all the wrong places.
Agencies: Agencies can eliminate their reliance on historical, time-consuming methods of identifying insurer appetite by using easy-to-use market search tools. Available integrated into your management system or as a stand-alone website, you simply enter two fields to denote the specific type of commercial risk and are returned real-time information as to the most likely insurers to have appetite for that risk and appropriate pricing.
Insurers: Insurers can take advantage of automated appetite communication technology to quickly identify agencies interested in new lines of business, and market product details directly to them at the exact momen they are searching for the right markets to submit new and renewal business to.
Next-step tech
Insurance is a relationship business so it’s not surprising both agencies and insurers continue to rely on traditional means, like phone calls and in-person visits, for finding and communicating appetite. While the importance of relationships in insurance will never cease, they can be enhanced with digital technology, allowing agencies and insurers to connect more quickly on potential new business. The greatest benefits to agencies of using a digital platform to identify insurers for commercial risks are spending less time finding the right markets (41%), and delivering the best quotes possible to clients and prospects (39%). Insurers that enhance their established agency relationships with the speed and convenience digital technology affords stand to build the most profitable relationships.
Find your match faster to write the most profitable business
3
6
* How COVID-19 has pushed companies over the technology tipping point – and transformed business forever. McKinsey Global Survey of Executives, October 5, 2020.
Find out more
Find out more
Close Card
Close Card
Close Card
Close Card
Close Card
Close Card