25/09/2019
Why do we need Insurance Agents?
An insurance agent is one the most important person in the entire insurance value chain. Insurance selling involves a personal touch. It is true that most of the younger generation people like to navigate through the web to get their insurance, but the ROPO strategy (Research Online Purchase Offline) remains popular. People may want to search for insurance information online, but when it comes to buying a coverage, they prefer interacting with a known Agent, who can answer their queries directly; and provide a more satisfying experience.
Here is why the agents are relevant and will remain relevant in the future as well.
1. The agent will assist you in filling the application and help you in understanding the fine prints in the policy terms and conditions. More often the claims may be denied because the application was inadequately filled.
2. The interaction with an agent is quicker, personalized and transparent compared to other channels of distribution. It is easy to connect face to face or otherwise with an agent any time during the policy term.
3. Every time you reach out to your agent you will be interacting with the same person which is unlike interacting with a chat bot or the call center interaction where the customer service guy will likely always be different. When you have an agent on your side, you have one person who is with you during be it making purchase negotiations, policy issuance, policy changes, during a loss which gives rise to claim and at the time of renewal.
4. An insurance agent has undergone requisite training and is more competent to give you the right advice based on his education and experience.
5. The services of the agent are ‘Free of Cost’. You don’t incur any additional cost when making the purchase through an agent. It is the insurance company that pays the agent.
6. How do you ensure you are making right choices? An agent can discuss your specific needs with you by reviewing your assets or property and make sure you are adequately covered. In case of online channels the customer is confused on what to buy, which limits to choose, which coverage options are best for him, what deductible/Excess needs to be chosen and what all to declare to the insurance company.
7. If you meet with an accident or any other event happens that gives rise to a claim under the policy, your agent will be your first point of contact and will walk you through the process. Based on his industry experience, he can make sure you fulfil your contractual duties adequately at the time of claim.
8. The nature of Insurance contract is different from other products and difficult for a layman to understand. Insurance contracts are Contracts of Adhesion meaning that the terms and conditions are drafted by and the other party i.e. . It is offered ‘take it or leave it’ basis and the insurers have On top of that you have complex conditions like those specific provisions, rules of conduct, duties, and obligations. There is a great need for someone who is familiar with to explain the conditions and the consequence of non-compliance of the contract.
9. The Online sellers and price comparison differentiate the products based on the prices which is governed by the coverage and the limits. Insurance industry, branding, corporate governance, ethics, values and other performance factors like turnaround time, claim settlement ratio, loss ratio etc. the amount of premium. Unfortunately the price comparison site on these important aspects. You need an Intermediary who is out there in the market interacting with different stakeholders and can help you in choosing a carrier who is well suited for your unique needs.
10. An agent can assist you well on the legal issues and help you in grievance handing if any dispute with the insurer arises
Source
Rajneesh Upreti, CPCU, ACII
Founder at BimaMall
