Over the last several years, it's become very clear that consumers expect both a consultative insurance agents and frictionless transactions. In the COVID-19 era, this has become even more evident as agents, their employees, and many of their clients are working from home (WFH).

This dramatic shift in the workplace has sped up the need for a different mindset when it comes to agency structure, processes and messaging, and has ushered in the use of advanced technology for meetings and connecting with both customers and employees.

So what defines a successful agency in today's shifting landscape?

A Fresh Look at Agency Structure

Remote work has brought agents, producers, support staff and the back office home, literally. For some agencies, the WFH shift has been a big adjustment while those that had already invested in digital processes have adapted much better to the new normal. Zoom calls, video emails and video proposals are now commonplace. Virtual assistants are a big thing.

Remote work has also put the spotlight on the need for greater efficiencies. Agencies are looking at how they have been performing certain functions, such as the sales process, endorsement issuing, renewals, and claims handling, and whether there is a better way. Agencies should really dig deep when evaluating how things are being done and get everyone involved in the organization so processes are actually improved – or put on the backburner.

Some agencies are also looking at their staff and determining whether, say, 20 employees are really necessary to perform what's needed, when eight actually may be enough. Maybe it's time to lower expenses as a firm and write more business using technology?

In evaluating an agency's staff make-up, also consider this: if an organization is looking to add the newer generation to their customer base – those individuals in their 20s and 30s – its employees should also reflect that generation. An agency has to walk the walk with its staff in order to resonate with that group.

What Agency Leadership Needs to Know

What really makes a difference in effectively serving a customer's needs is leadership's communication with both its staff and clients. Leadership needs to check in with staff regularly to connect and interact. If employees are not feeling secure in their agency environment (even while WFH), it's impossible for customers to feel okay. Touch base in the morning with employees, and ask if they need anything. End the day by touching base as well. Take the water cooler moments online. Hold weekly meetings.

In addition, connect with clients and have the staff connect with customers on a regular basis, asking them what they need. Insurance is a human business, a relationship business, and an opportunity business. Talk to customers.

The lifespan of WFH is yet unknown as is the return to in-person, face-to-face client connections. Most industry leaders believe that, even after the pandemic is put to rest, business will likely be conducted via a combination of both. WFH has shown us that we can get a lot more done via Zoom than in-person sales or customer calls. Yet you can't dismiss the value of meeting someone and breaking bread.

A Mindset Change Toward Technology

Sure, online quoting for auto and home insurance has been available for a long time now. It's the small commercial space that has to catch up to consumer demands, which WFH has helped to drive. Agency leadership needs to change its mindset and adapt to what clients want, not only in personal lines but also for small business insurance.

In fact, a recent survey indicates that while the customer experience within commercial insurance may be slower and more frustrating than when purchasing personal lines, expectations for the ability to perform quoting transactions are just as high.

Start-up insurtech companies are addressing the delivery of small commercial quotes, and agencies need to do the same in the name of new business and retention. Carriers also have to change their mindset. They need to further open up their quoting systems through APIs and web access to allow agencies to streamline what has traditionally been a cumbersome process. With direct access to a carrier's quoting engine with simplified forms and less friction, agents will be able to rate and quote policies much faster.

Business owners also want to be able to go online and receive premium indications for policies. An agent can then speak to coverage differences and go beyond just the price, helping the owner make an informed, educated decision.

WFH has also helped expedite the use of e-signatures to reverse the client signature bottleneck and move forward with an insurance transaction. Integration of e-signatures on forms delivers a better customer experience and enables an agency to close new business faster.

What Agencies Should Communicate

Agencies have traditionally talked about coverage, service and price. Yet what resonates with a customer is talking about the agency's core values, its people, and what it's really like to work at the organization.

Talk about the agency's vision – the "why" behind its existence as opposed to the agency's success. It's about being significant to others and relating to clients. For example, when talking about the agency's vision, it may be about protecting people and backing them up. People don't care about the "stuff." They care about why you care about them.

The Bottom Line

There's a lot to unpack as we move forward together in a changing and new landscape. Reconsidering agency structure, the day-to-day habits of leadership, technology, and the organization's communication plan all take time and an open mind. But these efforts offer a lot of opportunity for our resilient industry, paving the way for a bright future.

For more insights like these and beyond, check out our Change Insurance podcast.

Article contributions from the following Change Insurance podcasts: