Over the past five years, brokerages have lost 25 per cent of market share to consumer-direct insurers and that ground is being lost online. But there’s a way to reclaim it, says one industry player.
“As much as brokers do a great job in meeting customer’s needs, they are not taking advantage of fully engaging the client by investing in their online presence,” says Bill Morris, a partner at Navicom, who spoke at the Insurance Brokers Association of Ontario recently on how to connect with the 21st century consumer. “The opportunity to reach new consumers and customers, different segments of the market that they traditionally have never been able to reach – the opportunity is there to re-engage existing customers and grow market share.”
Morris told a group of brokers gathered for the recent IBAO-hosted seminar that the market share for the independents has “slipped significantly in the past 20 to 30 years,” and that today’s consumer is starting their search for insurance online – and that is where brokers need to make their best first impression. (continued.)
“Eighty per cent of consumers start online and are using some sort of internet-based search tool,” Morris told InsuranceBusiness.ca. “We have been spoiled by the banks and the big retailers when it comes to websites – consumers expect more. You need eye candy on a website, as we are wired that way; it is usually how we judge people. If you cringe every time you look at your website, you are already losing business. The customer looks at a boring, confusing or unattractive website, and they think, ‘maybe they don’t want my business.’”
Bryan Yetman, a broker with First Durham Insurance & Financial, likens a website to a physical storefront office.
“Think of it in these terms, 20 to 25 years ago,” says Yetman, “if you set up a store or office, and the paint is wearing and the trim is weathered, it is the same impression you get with a tired-looking website – and by extension, the same first impression you have when you judge how someone is dressed.”
Helping independent brokers to better compete against the “deep pockets” of the big banks is what seminars like Morris’ Connecting with the 21st Century Consumer is all about, says Helen Dunlop, director of broker development and education with the IBAO. (continued.)
“The viability of the channel depends on brokers embracing and adopting these changes, via the educational offerings through the IBAO’s training,” says Dunlop. “The viability of the channel depends on brokers embracing and adopting these changes, via the educational offerings.”
It is through seminars like this that the independents can compete with what Morris calls the “deep pockets” of the big banks.
“The direct writers, the big banks have deep pockets. They can focus their resources in key areas, like web site strategies,” says Morris, who also points out that the popular websites are out there for anyone to see and use – and to be emulated to the advantage of the independent broker.
“The beauty of having any product in the public sector, you can see it and see if it is working,” he says. “They (the banks) are paying some of the best in the business to develop websites; and everybody can see. I would argue that with more collaboration, more vigilant attention to seeing what is out there – the average broker can compete effectively.”
