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What We Already Know: Consumers Prefer Insurance Agents Over Technology »
WHAT WE ALREADY KNOW
CONSUMERS PREFER INSURANCE AGENTS OVER TECHNOLOGY
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Those of us working in the business already know this but it’s nice to see a survey bear out this truth. Technology and a lot of online buying options have NOT changed the minds of consumers. They want to work with, and buy insurance from, an independent insurance agent.
In our case, it is an independent agent of the PIA.
One form of proof of this premise — other than the survey information we’re about to share — is what some of the direct-to-consumer model insurance companies. They’re moving their business model from strictly online contact to using agents.
And this isn’t just for the benefit of older consumers.
A survey done by Agent Hero says from Generation Z on up, consumers want to work
with a person and not with a computer, or a phone. They find value in working with that agent. Here are some numbers: • 65% of all consumers will use an agent in the future
• 81% of Baby Boomers will • 79% of Generation X consumers will
• 84% of Millennials like agents and will keep using them • 69% of Generation Z consumers who have worked with an agent will do so again
Here’s a link to the Agent Hero survey. You’ll find the conclusions found there, fascinating: https:// campaign.agentero.com/consumersurvey
Source: PropertyCasualt360.com
RISING GAS PRICES
INFLATION HITTING THE GAS PUMPS
Omicron hit the U.S. in December and when it hit, gas prices started falling. At the time the new variation of the virus hit, the price of a barrel of oil fell from $84 to $64. It didn’t take very long for a barrel to go back up to $84.
That’s not good news, and Patrick De Haan of GasBuddy. com says right now we’re seeing the calm before the storm.
Prices will soon hit $100 a barrel and by March we are going to see prices climbing to as high as $4 a gallon at the pump. The reason — De Haan says — is as omicron cases decline people are going to get out more and start traveling again. Gasoline producers will have trouble keeping up with increased travel, and especially the increased travel associated with Spring vacations.
He expects prices to go up a quarter or more and stay up through May.
The long-haul, however, looks good. The U.S. Energy Information Institute (EIA) is the federal government’s eye on energy, and it tracks energy prices and consumption. The most recent Short Term Energy Outlook was published last week. It said oil and gas prices ought to be dropping over the next two years.
Look for gas price averages to be $3.06 a gallon for most of 2022 and $2.81 a gallon next year in 2023.
Source: The Seattle Times
PIA MEMBERS - ACCESS THE TOOLS, TECHNOLOGY AND SUPPORT YOU NEED TO GROW YOUR FLOOD BUSINESS
The Hartford and PIA have joined together to make it easier for PIA member agents to provide their clients with flood coverage through The Hartford. The program is available to PIA members and their policyholders in all 50 states and Puerto Rico.
HELPING YOU MARKET
• On demand training • Webinars • Marketing materials and newsletter • Dedicated Flood Sales Executive • Access to Transfer Consultant – we make moving your flood business to The Hartford easy • Access to Training Consultant – we help you build flood expertise
ADVANCED TECHNOLOGY FOR EASE OF DOING BUSINESS
• Flood zone determinations • SEMCAT and Vertafore integrated flood quote technology • Electronic application submission • Assistance in obtaining elevation certificates • Technological upgrades due to legislative changes
MEASURING YOUR SUCCESS
• Claims reporting • Policy database download and maintenance • Electronic movement of premium and commission funds • Increased revenue with competitive commissions • Reports on demand • Repetitive loss review
THE PIA ADVANTAGE
When you participate in PIA National’s official flood insurance program from The Hartford, you have the power of PIA behind you. PIA’s dedicated staff is ready to help if you need assistance. And, you’ll have access to The Hartford’s Flood Insurance Marketing Support Center.
CONTACT US
For more information about The Hartford’s Flood Insurance program for PIA agents, contact your local Flood Sales Executive: Michele Battis Phone: 704-972-5918 Email: Michele.Battis@thehartford.com
LEARN MORE AT PIANET.COM/HARTFORDFLOODINSURANCE.
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Our 3-part toolkit will help you make the most of today’s digital solutions. You can use it to: assess your virtual readiness; decide which technologies are right for you; calculate ROI on the solutions you choose; apply best practices for maximum results; and learn from other agencies.
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Brought to you by The PIA Partnership – PIA’s national carrier council. Partnership companies include:
CONSUMER WORRIES
Rising Auto Costs that Include Insurance
The 2022 State of the American Driver Report is done each year by an insuretech auto ownership called, Jerry. It takes a good look at the ins and outs of driving in the U.S. The survey of 1,250 people aged 16 to 75, covers a lot of areas ranging from electric vehicles to self-driving vehicles to the high cost of owning an auto and insuring one. It also looks at how we all feel about driving, what interests us about it and our worries about that age old American tradition of driving.
The survey results start with electric vehicles: • 33% don’t think they’ll ever drive an allelectric car
• 50% expect to drive one within the next decade
Those wanting to drive electric cars are mostly millennials and Generation Z. Both generations think they’ll be able to drive an autonomous vehicle in the next five-years. They are most interested in those vehicles because they’re inexpensive to drive. A big problem we all have with driving today — says Jerry’s data scientist, Lakshmi Iyengar — is how badly COVID has impacted the buying and selling of autos and how much it costs to drive one.
“Americans experienced sticker shock when shopping for new and used cars in 2021, and no relief is in sight this year,” Iyengar said. “This raises the total cost of car ownership and creates the need to cut costs elsewhere. Despite significant EV interest due to expected cost savings, consumers likely won’t find immediate cost reductions when buying an EV. That may come over the next 10 years as technology and charging infrastructure mature.”
Car insurance was also a topic of discussion in the study. It listed the most expensive and least expensive states to insure vehicles.
The most expensive first:
1. New York — $355 2. Maryland — $247 3. Delaware — $242 4. New Jersey —$241
The least expensive states — on average — for auto insurance include:
1. Vermont — $87 2. Wisconsin — $90 3. Idaho — $91 4. Oklahoma — $92
“Insurance carriers may not find this surprising given that the most expensive states are likely more densely populated and have more drivers on the road, which could be associated with risk of accidents,” Iyengar says. “Last year, insurance carriers offered short-term discounts to account for changing driving habits during the pandemic. At the end of 2021, we saw those discounts falling off, which will likely increase average cost for car insurance in 2022 for drivers. But not all workers are hitting the roads again.” “Insurers should expect to continue seeing customer interest in work from home or low annual mileage discounts in 2022, as driving habits remain impacted by COVID-19,” Iyengar says. “Additionally, we as an industry, cannot forget that shoppers for any product or service expect no more than a few clicks to complete a transaction. Customers are comfortable conducting the complete auto insurance transaction online and with no phone calls. Speed and simplicity are not optional.”
How much we’ll all be driving in the near future. • 22% say they’ll drive a lot less in 2022 than they did in 2019 • 69% say they’re going to return to their pre-pandemic driving
Here are some other facts found in the Jerry survey: • More of us will sell our cars in 2022 on digital platforms like Autotrader &
Facebook’s marketplace • 50% drove instead of flying in 2021 • This year 44% intend to start flying again
As for driving to work? We might continue to see a large number of people working from home.
