The Problems Many Businesses Have With Their Agents

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I talk to people regularly who tell me that they are not happy with their agent.  I hear statements like, “My agent does not understand my business”, “My insurance program is not matched to my business”, or “My agent always tries to sell me more insurance.”  These are common issues in the business community. I have found that the key issue with most of these concerns has less to do with the agent, and more to do with how the customer goes about selecting the agent.  What?–How can that be true?

Most agents are just trying to sell insurance and move on to the next account.  They are not bad people, but they have been trained to sell.  Our agents are different; first and foremost, we are trained to serve.

Too often customers go about selecting their agent through bidding out their insurance and then selecting the lowest bidder.

Here is a great quote form the movie Armageddon, when the team of oil drillers are sitting in the space shuttle ready to lift off, and having second thoughts.  “You realize we’re sitting on 45,000 pounds of fuel, one nuclear warhead and a thing that has 270,000 moving parts built by the lowest bidder?  Makes you feel good doesn’t it?” Rockhound played by Owen Wilson.

My contention is that the process by which clients select their agent is flawed, and there is a better way.  By only looking at the lowest price, you are missing the most important part of the process; getting the best possible combination, of coverage, risk management, customer service, and price designed for your specific business.

If buyers were to select agents on something other than price, they would be much happier.  Here is what to look for in an agent:

  • A good agent will have access to many markets, making price consistent between most agents.
  • Staff experience.
  • Special training and credentials.
  • Have conversations with prospective agents. Simply asking questions does not mean you have to work with them.  This is a chance for you to get a feel for how they work and if you feel comfortable with them.
  • A good agent needs a high emotional IQ. This includes the ability to listen and empathize with clients on a deeper level in order to discern what they really want and need.

 

Now go win the day!

Can You Improve Your Customer Service?

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As we move to the end of 2023, it would be good to identify ways agents and other businesses might improve their customer service. No matter how good they are at treating their clients like kings, any company may use these pointers to keep getting better:

Allow your team some leeway: Customers detest being kept on wait or instructed to “check with my supervisor” when they are seeking a resolution to a possible complaint or issue. Give your delegates a toolkit of instant use so they can handle situations without having to escalate to a higher level.

Personalize, customizing any response to your consumers is one of the easiest (and least expensive) methods to truly make them feel valued. This could be as easy as changing your email platform or e-blasts to include the customer’s name (if that information is available). It could also entail including a component in your phone bank training that encourages customer service representatives to ask for and repeat the customer’s name throughout the conversation, as well as to thank them by name at the end.

Make the most of technology: Automation services and business technology are always evolving and getting better. But one area where companies might be falling short is in the integration of technology. How many times have you tried to fix a problem while on hold only to be informed, “I can’t see other parts of your account,” or “I don’t have access to that information”? Look at ways to combine team member access to all technological platforms and data to expedite response times and improve customer service efficiency. This will help you prevent needless delays.

Acknowledge excellent service: While improving external, customer-facing service is crucial, it’s also necessary to practice internal customer service and give credit to team members that go above and beyond. Use this opportunity to establish an internal recognition program for staff members who have been recognized for providing exceptional external service, if you don’t already have one in place. Simple actions like a public thank you, internal email, or intranet posting can make a big difference. Specific recognitions like extra paid time off, gift cards, or other company benefits can also be very beneficial. For those who dedicate their days to serving external audiences, an internal “thank you” from the boss is greatly appreciated!

Always ask for feedback: Always ask your customers “How are we doing?” even if you don’t always like their responses. – An email customer service survey or a straightforward feedback form at the conclusion of an online chat might offer insightful information about what is and isn’t functioning properly in your system. Customer feedback also conveys to your clients your sincere concern for their experience and gives them a sense of involvement in the process.

Find additional channels by which your clients can contact you: For many years, the most popular methods of reaching out to and communicating with customers were call centers and email addresses. Technology is always changing, as is the way people use it to communicate. Speak with your customer care representatives to find out if customers are asking for other methods of resolving problems; furthermore, take a peek at what your rivals are doing. Is it possible to add a new channel to your website, such a chat feature? What about a WhatsApp or messaging feature? Passive outreach tactics such as these could prove to be more effective than phone calls, particularly when working with clients that are spread across different geographies and time zones.

 

What Is Your Insurance Agent Doing For You?

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Engaging in any business requires the support of professionals who can guide you through the complexities and challenges of your industry. One such professional is an agent. They play a critical role in ensuring your success. However, not all agents are created equal. It’s important to know what your agent should be doing for you to ensure that they are providing the best service possible.

Educating You

Knowledge is power, especially in business. Your agent should be a source of knowledge and education for you. They should be able to explain the different aspects of your business, the market, and the industry as a whole. It’s their responsibility to ensure that you are well informed and understand the details of your business. This not only helps you make informed decisions but also increases your confidence in your business operations.

Connecting with You

Communication is key in any relationship, and the one between you and your agent is no different. Your agent should be proactive in reaching out to you, keeping you updated, and being responsive to your inquiries. They should be available to answer any questions, concerns, or ideas you may have. The more connected you are with your agent, the better they can serve your needs.

Reviewing Your Risk

Every business comes with its own set of risks, and it’s your agent’s job to help you understand and manage them. They should be able to review your business operations and identify potential risks that could affect your business. They should also offer solutions or strategies to mitigate these risks. By doing so, they can help protect your business and ensure its longevity.

Looking for the Right Combination of Coverage and Price

One of the critical roles of an agent is to help you find the right insurance coverage for your business at the best price. They should be able to navigate the complex insurance market and find a policy that fits your needs and budget. It’s their duty to ensure that your business is adequately protected without overpaying for coverage.

Responding to Questions

Your agent should always be ready and willing to answer your questions. No question is too small or too big for them to handle. Whether you’re asking about policy details, claims, or changes in the market, your agent should provide clear, accurate, and timely answers. This not only helps you understand your business better but also builds trust between you and your agent.

Providing Great Customer Service

Last but not least, your agent should provide exceptional customer service. They should be friendly, approachable, and professional. They should also be proactive in addressing your needs and resolving any issues that may arise. Great customer service not only makes your business interactions more pleasant but also fosters a strong, long-lasting relationship between you and your agent.

An agent plays a crucial role in the success of your business. They should be educating you, connecting with you, reviewing your risk, looking for the right combination of coverage and price, responding to questions, and providing excellent customer service. They should be a partner in your success and not just a service provider. So, make sure to choose your agent carefully and hold them to these standards.

Insurance Will Always Be A People Business

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Insurance is a vital aspect of our lives that often gets overlooked. In the modern, fast-paced world where uncertainty is the only certainty, having a safety net to fall back upon is crucial. Insurance is that very safety net, providing financial protection against unexpected risks and losses. However, the insurance sector is not immune to changes and has been evolving rapidly over the years. This evolution, though, doesn’t change one fundamental truth about insurance – that it is, at its core, a people business.

Insurance: A People Business

Despite the significantly advanced technology and digital platforms transforming the way we purchase and manage insurance, the essence of insurance remains the same. It is, and will always be, a people business. The insurance industry thrives on a strong interpersonal relationship between the insurance agents and their clients. These agents are not just salespeople trying to sell a product; they are advisors, counselors, and friends who understand your unique needs and suggest the best possible coverage for you.

The Human Touch in Insurance

Insurance agents play a crucial role in the insurance process. They get to know you, your family, your business, and your lifestyle. They listen to your worries about what might happen in the future, understand your financial situation, and take into account your risk tolerance level. This deep understanding allows them to recommend the most appropriate insurance coverage that protects your interests in the best way possible. It’s this human touch that makes insurance more than just a financial transaction.

Adapting to Change

In the face of continuous evolution in the insurance domain, it is essential to adapt while preserving the human element. With the advent of InsurTech, artificial intelligence, and machine learning, the insurance landscape is changing. However, these technologies are tools that aid the insurance agents to provide better service, not replace them. The future of insurance may hold many transformations, but the essence of it being a people’s business will remain constant.

Insurance is more than just a product or a service. It’s a promise of protection that hinges on the strong relationship between the insurance agents and their clients. As the insurance sector continues to evolve, it’s important to remember that no matter how the methodologies may change, the people-oriented nature of insurance won’t. After all, it’s all about understanding people’s needs and providing them with the right coverage.

EEOC Warns About Us Artificial Intelligence

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Artificial Intelligence (AI) has revolutionized various industries, including Human Resources (HR), by automating processes, streamlining recruitment, and enhancing decision-making. AI in HR is often touted as an efficient, unbiased tool to find the best talent. However, concerns have arisen about AI’s potential to discriminate in HR practices. In this article, we will explore how AI might unintentionally perpetuate biases and discrimination in hiring and other HR processes.

Data Bias

AI systems in HR often rely on historical data to make predictions and recommendations. The problem is that this historical data can contain biases. If past hiring decisions were made with human biases, AI algorithms trained on such data might perpetuate these biases, leading to discriminatory outcomes.

For example, if a company historically favored candidates from certain demographics, an AI system might inadvertently prioritize candidates with similar characteristics, even if they are not the most qualified for the job.

Algorithmic Bias

Algorithms play a pivotal role in AI’s decision-making processes. The design and configuration of these algorithms can introduce biases if not carefully crafted and tested. Biases can creep in through various stages of AI development, including data preprocessing, feature selection, and model training.

Algorithmic biases can result in the over- or under-representation of certain groups. For instance, if an AI system identifies attributes like names or locations as predictive of job performance, it might disadvantage individuals with names or locations associated with underrepresented groups.

Lack of Transparency

Another challenge with AI in HR is the lack of transparency. Most AI models are considered “black boxes,” meaning their inner workings are not easily interpretable. This opacity can make it difficult to identify and rectify biases in the system. HR professionals may not be able to explain why an AI system made a particular recommendation or decision, leading to mistrust and frustration.

Amplifying Existing Inequalities

AI-driven recruitment tools may also perpetuate existing inequalities in the job market. For example, if a company primarily recruits from elite universities, an AI system may continue this trend, even if the talent pool from other institutions is equally or more qualified. This practice exacerbates disparities in opportunity, hindering diversity and inclusion efforts.

Mitigating AI Discrimination in HR Practices

Addressing AI discrimination in HR is essential for creating a fair and diverse workforce. Here are some steps that organizations can take to mitigate these issues:

  • Diverse Training Data: Ensure that the training data for AI systems is diverse and free from historical biases.
  • Regular Audits: Conduct regular audits of AI systems to identify and address biases. It’s important to have checks and balances in place to monitor the technology.
  • Transparency: Encourage AI developers to create more transparent systems so that HR professionals can understand and interpret the decision-making process.
  • Bias Mitigation Algorithms: Invest in the development of algorithms that actively detect and mitigate biases in real-time.
  • Inclusive AI Development Teams: Form diverse teams when designing and implementing AI systems to consider various perspectives and reduce the risk of unconscious biases.

AI in HR has the potential to be a valuable tool for improving hiring and other HR practices. However, the risk of discrimination through AI systems is real and should not be underestimated. Organizations must be vigilant in addressing this issue, working towards creating more inclusive and unbiased HR processes, and promoting diversity and equal opportunities in the workforce. By understanding the potential pitfalls and taking proactive steps, we can harness the benefits of AI while minimizing its capacity to discriminate.

Why Give Excellent Customer Service?

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Over the past few months we have been encouraging agents and buyers to develop a new way of thinking about the insurance relationship. What we have yet to talk about is the reasons behind giving excellent customer service. This is important because if you don’t have an understand as to why relationships are important, your excellent customer service will be short lived.

Let’s look at five motivations behind building relationships and giving excellent customer service.

  1. You really must actually care about helping people. The right insurance can help businesses and families through a crisis.
  2. It is important to have an educator’s heart. We teach; we don’t sell. If we are teaching people about their risks, then they are better able to make the right decisions to protect themselves.
  3. We are designed to have connections with other people. Often clients and agents become good friends. To connect with your clients, you must understand them and their individual needs.
  4. To believe in excellent customer service, an agent must be educated in all areas of insurance and risk management.
  5. You must have an inquisitive nature. You must love to learn more about your clients’ families or businesses. The more you know, the more you can help them solve their problems and concerns.

Now go serve your clients and have a successful day!

Three Ways Insurance Agents Can Improve Customer Service

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Certainly, improving customer service is crucial for insurance agents to build strong relationships with their clients and retain their business. This is important when you don’t treat insurance as a product but a service, but rather a relationship. Customers want advice, communication, education, and partnerships with their insurance agent. In order to accomplish this, agencies must create a different management model. Here are ways to help employees feel more engaged.

Here are three ways insurance agents can enhance their customer service:

  1. Effective Communication: Clear and transparent communication is paramount in the insurance industry. Insurance policies can be complex, and clients often have questions or concerns. Insurance agents should:
    • Active Listening: Listen attentively to clients’ needs and concerns. Understand their unique situations before suggesting suitable insurance solutions.
    • Clear Explanations: Use simple, jargon-free language to explain insurance policies, coverage options, and terms. Make sure clients fully understand what they are purchasing.
    • Timely Responses: Respond promptly to client inquiries, whether through phone calls, emails, or in-person meetings. Demonstrating responsiveness shows clients that their concerns are valued.
  2. Personalized Service: Clients appreciate when insurance agents treat them as individuals with distinct needs. To provide personalized service:
    • Assessment: Analyze each client’s situation to recommend policies that align with their specific needs and circumstances.
    • Follow-up: Regularly check in with clients to ensure their insurance coverage remains appropriate. Life changes, such as marriage, children, or a new job, might require adjustments to their policies.
    • Educational Resources: Provide clients with informative resources, such as articles or guides, that help them understand insurance concepts and make informed decisions.
  3. Technology Integration: Utilizing technology can streamline processes and enhance the customer experience in the insurance industry:
    • Online Portals: Offer clients access to online portals where they can view their policy details, make payments, and update their information at their convenience.
    • Automated Reminders: Set up automated reminders for policy renewals, premium payments, and important milestones. This helps clients stay informed and avoids policy lapses.
    • Virtual Meetings: Use video conferencing tools for virtual consultations, especially when in-person meetings are not feasible. This demonstrates adaptability and widens your reach.

Remember, consistently exceeding customer expectations and building strong relationships can lead to client loyalty, positive referrals, and a solid reputation within the insurance industry. These commitments result in the highest customer satisfaction and confidence. They are Reichley Insurance Agency’s highest priorities.

Reichley Insurance is in the business to meet people’s and businesses’ needs. We don’t ever sell you a product. We create and deliver personal and business solutions that address your individual needs, and sometimes that may not include any insurance if it is not in your best interest. Our belief is that by doing what is best for you… we will also benefit.

 

 

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Should Insurance Technology Always Be Trusted To Predict Accurate Or Fair Results?

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Insurance companies have relied on data to set their rates for years, but with the advent of advanced technology, insurers can now gather and analyze more data than ever before.  While the use of technology to set rates has its benefits, there are also several problems associated with this practice.

We will show you how an experienced agent can help you understand this technology and why it is important.  Many people are trying to push insurance into a commodity driven by technology and quick, cheap pricing.  We will continue to advocate the importance of personal relationships and how through these relationships, clients get the best combination of coverage price and service.  It is important to understand that insurance is not a product but a service.

Lack of Transparency

One of the biggest problems with insurers using technology to set rates is the need for more transparency in the process.  Insurance companies use complex algorithms to analyze vast amounts of data, and these algorithms are often proprietary and not subject to public scrutiny.  This lack of transparency can make it difficult for consumers to understand why they are being charged a certain rate or to challenge the accuracy of the data being used to set their rates.  Agents find it difficult to get answers to questions involving how this complex system process the data to get the final rate, therefor are not capable of explaining or encouraging modifications to behavior that are negatively affecting their insurance outcomes (cost or coverage).

Lack of Personalization

While technology can help insurers gather more data, it can also result in a lack of personalization in the insurance process.  Insurers may rely too heavily on data to set rates and overlook important factors that can affect an individual’s risk profile.  For example, a person with a safe driving record may be charged the same rate as someone with a poor driving record simply because they fall into the same demographic group.

Data Privacy Concerns And Unintended Consequences

The use of technology to gather data for insurance purposes raises serious privacy concerns.  Insurers are able to collect a vast amount of data on individuals, including information about their driving habits, health status, and online activity.  This data can be used to set rates, but it can also be used for other purposes, such as marketing or even denying coverage.  Additionally, insurers can gather more data on individuals.  In that case, it may lead to a situation where people considered high-risk cannot obtain insurance at all.

Benefits Of Having An Agent

Agents can help you design an insurance program that includes deductibles, limits, and coverage that represents the risks you have.  If you understand what you are buying, then you have a better basis for determining the best pricing options.  Factor in now how their data is being used to align with cost & coverage models, carrier appetite for their specific risk issues, finding the soft dollars that benefit the client amidst the complete underwriting and rating systems used by carriers, and still being able to speak to a live person at the end of all this to influence the final decision regarding a particular risk and you have a very important advantage on your side.

Five Things Everyone Should Expect from Their Insurance Agent

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Insurance is an essential part of our lives, providing us with peace of mind and financial protection in times of need. When it comes to navigating the complex world of insurance, having a reliable and trustworthy insurance agent is crucial. Whether you’re shopping for auto, home, health, or any other type of insurance, there are certain expectations you should have from your insurance agent. In this blog, we’ll discuss five things everyone should expect from their insurance agent.

Expertise and Knowledge

One of the primary expectations from your insurance agent is expertise and knowledge. Insurance is a complex industry with various policies, coverages, and regulations. Your agent should have a deep understanding of these intricacies and be able to provide you with clear explanations and guidance. They should be up-to-date with industry trends, changes in laws, and the latest insurance products. A knowledgeable agent can help you make informed decisions about your insurance needs.

Personalized Service

Every individual and family has unique insurance requirements. Your insurance agent should take the time to understand your specific needs and circumstances. They should be able to customize insurance plans that cater to your situation. Whether it’s finding the right coverage for your car, home, or health, a good insurance agent should tailor their services to suit your requirements.

Transparency and Honesty

Honesty and transparency are non-negotiable when it comes to your insurance agent. They should provide you with clear and straightforward information about your policies, including coverage limits, deductibles, and premiums. Additionally, they should disclose any potential conflicts of interest and help you understand the terms and conditions of your insurance policies. Trust is paramount in the insurance relationship, and a trustworthy agent will always act in your best interests.

Accessibility and Communication

Good communication is key to a successful relationship with your insurance agent. You should expect your agent to be accessible and responsive when you have questions or concerns. They should promptly return your calls and emails, and they should be willing to meet with you in person if necessary. In times of emergencies or when you need to file a claim, your agent should be a reliable point of contact to guide you through the process.

Claims Assistance and Advocacy

When you face an unexpected event or loss, your insurance agent should be there to help you navigate the claims process. They should assist you in filing claims, provide necessary documentation, and advocate on your behalf with the insurance company to ensure a fair and timely settlement. A proactive and supportive agent can make a significant difference during stressful situations.

Your insurance agent plays a vital role in securing your financial future and protecting your assets. Expecting expertise, personalized service, transparency, accessibility, and claims assistance from your agent is not too much to ask. These qualities are essential for a productive and trust-based relationship. If your current insurance agent doesn’t meet these expectations, it may be time to consider finding one who does. Remember that your insurance agent should work for you and your best interests, ensuring you have the coverage you need when you need it most.

Our Top Ten Business Risks

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Business risks can vary depending on the industry, location, and specific circumstances of a company. However, there are some common business risks that many organizations face. We have always believed in education and putting you first. Some of these risks can be managed by insurance and other through risk management strategies, give us a call today.

  1. Economic Uncertainty: Fluctuations in the economy, including recessions, inflation, and currency exchange rate changes, can significantly impact businesses.
  2. Market Competition: Intense competition can erode market share, pricing power, and profitability. New entrants and disruptive technologies can pose additional threats.
  3. Regulatory and Compliance Changes: Evolving regulations, industry standards, and compliance requirements can create legal and operational challenges for businesses.
  4. Cybersecurity Threats: Data breaches, cyberattacks, and other cybersecurity threats can lead to data loss, reputation damage, and financial losses.
  5. Supply Chain Disruptions: Disruptions in the supply chain, such as natural disasters, political instability, or logistical problems, can interrupt production and impact revenue.
  6. Talent Management: Attracting and retaining skilled employees is crucial, and labor shortages or turnover can disrupt operations.
  7. Reputation and Brand Damage: Negative publicity, social media backlash, or ethical issues can harm a company’s reputation and brand value.
  8. Financial Risk: This includes factors like liquidity problems, credit risk, and high debt levels, which can lead to financial instability.
  9. Technology Disruption: Rapid technological advancements and the failure to adapt can make businesses obsolete.
  10. Environmental and Sustainability Issues: Climate change, environmental regulations, and consumer demand for sustainable practices can affect a company’s operations and reputation.

It’s essential for businesses to regularly assess and manage these risks to minimize their potential impact and enhance their resilience in a dynamic business environment. Additionally, the specific risks a company faces can vary widely based on its industry, size, and geographic location, so a thorough risk assessment tailored to the organization’s circumstances is crucial.