Industry wide survey

Industry wide survey on how Independent P&C Insurance Agencies thrive in a competitive marketplace.

Independent agencies in the P&C market are optimistic about the future and expect growth to continue. Larger agencies are predicting growth in the use of technology and will be considering new systems, while smaller agencies will focus on maintenance of current software and hardware.

Here are the Key Findings of this survey:

1. Independent P&C agencies are optimistic in 2016, with seven in ten agencies optimistic regarding the future.
2. Most agencies have experienced a rise in revenue in both Personal and Commercial lines in the past couple years. They are focused on improved services and selling to existing customers.
3. Everyone is expecting spending on technology to increase dramatically. (The growth and focus on technology budgets varies by agency size.)
4. The most commonly utilized tools are Facebook and agency websites.
5. Most agencies are predicting there will be an increase in both Usage-Based Policies and insurance policies tailored to the sharing economy over the next year.

A few sample survey questions . . .

1. How do you feel about the future success of your agency?
……….Large agencies – 77% very optimistic & 8% somewhat optimistic
……….Medium agencies – 48% very optimistic & 33% somewhat optimistic
……….Small agencies – 36% very optimistic & 20% somewhat optimistic

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2. What has driven your agency’s growth in personal lines over the last two years?
……….A. Customer retention has improved – 53%
……….B. Effective cross-selling to existing customers – 50%
……….C. Better service to existing customers – 49%
……….D. Increased marketing efforts – 45%
……….E. Effectiveness of marketing efforts – 33%
……….F. Customer Relationship Manager – 29%
……….G. Adding more producers – 25%
……….H. Increased pricing – 22%
……….I. Acquisition of another agency – 16%
……….J. Partnerships with other agencies – 14%

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3. What has driven your agency’s growth in Commercial lines over the last couple years?
……….A. Increased demand for particular coverage – 55%
……….B. Effective cross-selling to existing customers – 42%
……….C. Better service to existing customers – 42%
……….D. Customer retention has improved – 40%
……….E. Partnership with other agencies – 40%
……….F. Increased marketing efforts – 37%
……….G. Adding more producers – 28%
……….H. Effectiveness of marketing efforts – 26%
……….I. Increased price – 23%
……….J. Customer Relationship Manager – 15%

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4. What is your agency; use of the following tools?
……….A. Company website – 66% currently using
……….B. Agency workflow tools – 66% currently using
……….C. Facebook – 66% currently using
……….D. Direct marketing and lead-generation – 52% currently using
……….E. Customer relationship management – 45% currently using
……….F. Linkedin – 35% currently using
……….G. Mobile websites on smart phones – 42% currently using
……….H. Content contributed to Linkedin – 35% currently using
……….I. Risk analytics tools – 33% currently using
……….J. Blog – 25% currently using
……….K. Video conferencing – 22% currently using
……….L. Twitter – 20% currently using

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5. How frequently do you use the following devices in the field?
……….A. Smart phone – 74%
……….B. Laptop – 50%
……….C. Tablet – 38%
……….D. Digital camera – 34%
……….E. GPS – 34%
……….F. Older technology device – 25%
……….G. Wearables – 17%
……….H. Drones – 9%

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6. How much of a threat to your agency do you think the following issues are?
……….A. Generation X’s and Y’s desire to be self-directed and transact and interact directly with insurance companies – 10% ……….serious threat
……….B. Commoditzation of personal auto insurance and other lines of business and lower commissions – 11% serious ……….threat
……….C. Use of predictive analytics and other technologies that allow insurance companies to be more self-sufficient with ……….risk selection and rely less on insurance agents – 7% serious threat
……….D. Websites that pull premium information from many carriers and allow consumers to compare premiums online – ……….10% serious threat
……….E. Changes in legislation by Congress or State Legislatures – 10% serious threat
……….F. Startup companies working to disrupt the industry – 1% serious threat

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7. Of the following current and potential industry developments, what type of impact will they have on the way P&C insurance agencies currently conduct their business?
……….A. Mergers and acquisitions – 36% Positive impact
……….B. Usage-based insurance policies – 30% Positive impact
……….C. Venture capital investment in insurance technology start-ups – 24% Positive impact
……….D. Changes in legislation by Congress or State Legislature – 23% Positive impact
……….E. Online retailers, such as Amazon – 18% Positive impact
……….F. Aggregators – 16% Positive impact
……….G. Car dealerships selling car insurance – 15% Positive impact
……….H. The 2016 Presidential election – 12% positive impact


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