In today’s world of instant online access, insurance carriers and independent agents are competing for customers through multiple media channels. Thus, we need to discuss the use of comparative raters.
How Do Comparative Raters Work?
Comparative raters have been available in the industry since the early ’80s, and while there has been more adoption in Main Street independent agencies across the country, there is still the looming stigma that they do not work. But, is it really that they don’t work, or it is that they do not fit the mold of “how agents have always operated” in their agencies?
Consider the latter — raters were, and still are designed to provide agents access to multiple carriers and proposals for their client’s insurance needs at one time. As an agency principle, would you rather or have your staff have to input the same client information into multiple carrier websites, or would you prefer they enter into one spot and receive preliminary proposals for multiple carriers? I would venture to guess the latter, as ultimately it’s going to save your staff time, and thus your agency money.
Initial input into a comparative rater takes approximately five to seven minutes, and preliminary rates are returned for multiple carriers, as opposed to logging into each carrier portal and typing information multiple times (creating redundancies in your agency). Inputting quotes into multiple carrier sites could easily take 15 to 20 minutes per carrier with all of the individual logins, whereas using a single point of entry rater would take you a fraction of the time and yield instant results.
What could your agency do with this extra time? Cross-sell to existing clients? Market to new clients? Enhance your centers of influence? The possibilities are endless!
Advangates of Using Comparative Raters
During my time at Smart Choice and on the road building relationships with agents, the argument to raters that I most often hear is: “I know exactly where to place my client and I just go to that carrier direct”. But can you really say that with 100 percent certainty? Likely not, and it may be costing your client. I encourage you to think outside of the box, revaluate your business operating model and think of the potential disservice this could present to your customers.
Options are always good, right? It’s one of the primary benefits of being independent. Presenting and reviewing options from a rater can let your client know you have done your due diligence in finding the best solution for them. Not only does this have a profound effect on the sale, but also the relationship and most importantly, retention. A litany of other benefits include Standardized Agency Operating Procedures, reduction in loss ratios, and market knowledge (compare all carriers in one single screen). Lean out your operation, and eliminate waste by presenting the best pricing and coverages. It is also much easier to build your agency and train your staff on a rater than on each carrier’s online portal.
In today’s technology-driven world, independent agents should be competing for customers by leveraging technology like comparative raters, rather than continuing to operate as they always have.
Personal Lines: Identifying Unique Touchpoints for Every Policy
As a bridge between carrier and client, independent agents are in a unique position to provide mutually beneficial solutions and services to both parties, which will elevate your worth and your business. For more on how agents can improve relationships with clients and grow their business as independent agents, check out the 2020 Issue 1 of Smart Choice Magazine.