In today’s world, many companies are turning to the use of robo-advisors to assist customers in making purchasing decisions. The sad reality is that many insurance companies are following suit. However, this practice is to the detriment of businesses who decide to rely on robo-advisors or “bots” to handle their customer service needs, especially when used in place of insurance agents.
The reality is that while some people may accept bots in place of human insurance agents, the wide majority of people prefer working with human agents. This is across the board and not in a single demographic. The value of humans as insurance agents is not going to go away any time soon. This is excellent news for consumers.
Consumers Prefer In-Person Agent Experiences
Most consumers, 65 percent, plan to use an insurance agent in the future. Breaking it down by demographic, however, you’ll see that the majority of consumers of all ages who have worked with insurance agents in the past, plan to do so again. According to a recent survey, here’s how it breaks down.
- Baby Boomers – 81 percent
- Gen Xers - 79 percent
- Millennials - 84 percent
- Gen Zers (or Zoomers) – 69 percent
Perhaps the most shocking bit of information from these numbers is that the number of Millennials planning to use insurance agents in the future surpassed the percentages of Boomers and Gen Xers. Ultimately, all generations prefer working with actual humans when it comes to something as important as insurance decisions than working with bots.
Insurance is Moving in a Customer-Centric Model Going Forward
The demands of the modern consumer have forced the insurance industry to adjust its way of operating. While in the past, insurance agencies may have had a more “product” focused approach to insurance, the shift to a more customer-focused philosophy has been notable. In fact, many agencies have made the move from a single provider service to independent agencies that allow insurance agents to work with multiple insurance providers in order to provide for the needs of a wider range of customers. In this scenario, the customers are the ultimate winners with a wider selection of insurance products, services, and prices available to them.
What do Customers Prefer and Value?
All of these changes are reflective of a more vocal consumer base. This is one way that social media has made the world so much smaller and forced businesses, even within the insurance industry, to adjust to meet those demands for a few key “ingredients.” These are some of the things consumers expect from their insurance providers.
- Exceptional Customer Service
- Responsive Service
- Expert Advice
- Informational Content
- Digital Capabilities and Experiences
- Community Minded Organizations
Insurance agencies that provide all these services are preferred and better trusted by consumers across all demographics. They are viewed as transparent in an increasingly opaque world and provide important services that consumers value – especially when delivered by human insurance agents rather than “customer service” bots.
The value of working with an independent insurance agent cannot be compared to that of working with a corporate “robo-advisor.” Our team at Arnold Insurance understands the frustration of working with these bots. We are dedicated to providing our customers the best products and customer service no matter what type of insurance protection you need to purchase. Give us the chance to prove that to you by contacting us today so you can experience the difference for yourself.
