Brokers need to communicate more often with their customers: IBAO research

Brokers need to do more of the grassroots style of communication with their clients that made the channel so successful in the first place, proprietary research by the Insurance Brokers Association of Ontario (IBAO) suggests.
IBAO CEO Randy Carroll and IBAO director of operations Paul Taylor both presented the research results at the 89th annual convention of the Insurance Brokers Association of Ontario (IBAO).
IBAO solicited the opinions of 15,000 consumers, looking for information pertaining to consumers’ insurance-buying behaviours and beliefs, their purchase habits, their demographics and their choice of insurance provider benefits and attributes.
IBAO received about 1,500 responses to the survey.
The survey found that 17% of the market has switched from the broker channel to another provider over the past three years. Nevertheless, brokers still held the largest segment (43%) of the market.
Brokers ought not to be complacent about communicating with their customers, the IBAO warned. The survey found a significant number of brokers were falling short of managing current demand from consumers.
For example, 31% of respondents answered indifferently when asked if they were receiving “superior value” from their insurance broker.
In a separate question, 18% of respondents were ambivalent when asked if they would recommend a broker to their family or friends.
A key goal for brokers should be to reach out to these people with more frequent contact, Carroll and Taylor said. They pointed to survey results that showed broker customers like to be contacted at least twice a year, not including renewals or claims.
The IBAO’s survey results showed 62% of respondents wanted to be contacted occasionally, and 37% said they were contacted less than they would have preferred.
Carroll and Taylor gave several examples of personally receiving information from direct writers and cable companies — sometimes as often as once a week. And yet, some consumers only hear from their brokers once a year.
They said brokers need to be seen in their communities, and they need to hear from their brokers by telephone.
When asked if consumers would perceive more frequent mailings from brokers as “junk mail,” Carroll noted written contact information could include helpful information like safety tips for preventing damage to a home.
Other brokers at the seminar noted the value of sending out birthday cards or quarterly newsletters with information about insurance.