The insurance industry has always acted as society’s ‘financial safety net’ against uncertainties and risks. The world’s focus on this sector is expected to intensify in the future due to cybercrime and climate change risks.
As per Deloitte’s 2024 Global Insurance Outlook report, the industry will take a more customer-centric approach marked by tech adoption and enhanced collaboration. This means steps will be taken to address the aforementioned concerns but the process will be gradual.
Customers have the option to select an insurance agent tied to a specific insurer or one that works independently. So, what is the better option? In this article, we will discuss six benefits of choosing an independent insurance agent to help you make an informed choice.
Customer Advocacy
The claims process is complicated enough for a policyholder to feel overwhelmed by the steps and technical terms. The good news is that an independent agent works for the customer and not a specific insurer.
As per Brooks, Todd & McNeil, independent agents act as an advocate on their client’s behalf. This will be done in the following ways –
- A completely personalized experience based on a customer’s unique insurance needs
- Forging a lasting relationship by understanding the customer’s future plans
- Offering the most affordable insurance products after a thorough comparison
- Ensuring the customer receives fair claims resolution after proper negotiation
Wide Pool of 0ptions
As mentioned earlier, independent insurance agents are not tied down by a singular insurer. This frees them from the pressure of promoting one line of products that an insurance company provides.
As the customer, you get the benefit of multiple options for the same insurance product. This helps in comparing different premiums since the agent will have no brand preference. You can save significantly as a result. You may even compound all savings for complete coverage through multi-policy discounts.
Unbiased Advice
During the pandemic and beyond, thousands of independent insurance agencies have cropped up across the US. This happened because customers are realizing the importance of unbiased advice and multiple options.
In other words, only an agent with a broader view of the industry can help navigate the problem of rising premium rates. An insurance agent tied to a specific company generally has a narrow market view.
Let’s take the example of a US state where car insurance premiums are 137% higher than the national average – Connecticut (CT). One top way to reduce the premium amount is simply to compare between insurers.
Only independent insurance agencies in CT will be able to provide this benefit to their customers. Furthermore, the freedom that independent agents enjoy motivates them to find better-suited policies each time.
Money Savings
This benefit is closely tied to the fact that independent insurance agents enable policy comparison. Since you can find the best premium rates, it becomes possible to enjoy major savings on individual policies.
To get the most out of your agent, it’s best to apply for multiple policies and have them bundled up. That way, you may get additional discounts.
Single-Stop Shopping
There is no single insurance policy that will be able to meet all your lifestyle needs. Modern customers often invest in different policies that can cover them against unique kinds of losses. Examples would include insurance for homes, automobiles, personal articles, businesses, and more.
An independent insurance agent will cater to all such needs because they have tie-ups with different insurers. The same cannot be said of an agent working for one company. Depending on the agent, you may even find policies that protect against unique risks – luxury items, pets, special events, etc.
Local Knowledge
Another benefit of selecting an independent insurance agent is that they are interested in getting to know their clients intimately. Being in your local community allows them to serve your insurance needs for a lifetime.
With time, their local knowledge will enable them to recommend products that match your then requirements. They will keep track of the companies that have offered you satisfactory service in the past. Moreover, independent agents will be aware of the risks associated with that particular area. You can rest assured that their expertise will be personalized for your benefit.
Finally, independent agents are highly experienced and licensed professionals who can explain a policy in the simplest terms possible. Since the insurance industry is full of complex technical terms, exclusions, and complications, this comes in handy. Policyholders are often confused about their needs and actual coverage.
The independent insurance agent will work towards building a relationship with you to understand your needs better. Then, they will offer you much clarity in your insurance journey, thereby making it hassle-free.
