The Time is Now – The Game Changer is Here!

Anyone who has read my articles or heard me speak knows I have been advocating for a major shift in the way Independent agents and brokers operate in the marketplace. Competition is coming from everywhere and through an increasing number of sources. Most of the competition is using digital marketing and the internet to grab market share. Currently they’re focused on personal insurance (especially personal auto) but BOP type Main Street commercial business won’t be far behind.

I’ve talked about how important it is to develop your agency’s value proposition. Once developed that newly created value proposition needs to be known and lived by all your staff as well as communicated on your agency website. That website needs to be dynamic and constantly evolving which increases your SEO (search engine optimization). A well written, consumer relevant blog tied to your website is a significant enhancement. Jumping into social media is another significant enhancement that leads to getting back into the game of selling protection only now you are using digital media and the internet. Facebook, Twitter, LinkedIn and You Tube are the new ways of reaching, communicating and developing a relationship with the buying public.

Most agents not planning retirement and interested in being a significant player in the marketplace realize the need for these changes in the way they do business. Many respond that they don’t have the time, knowledge or money to go out and locate, investigate, contract, train their staff and implement these important enhancements making them a part of their agency operations. They’re insurance agents not internet nerds or techies. Because of their frustration many start to question whether these changes are really that important. What is wrong with how they are doing business now? It’s served us well for all these years. Why is making these changes so important? Are these changes really necessary or just a lot of hype? Let me provide you with some facts and you make the decision. Between 2007 and 2010 the percentage of consumers shopping online has gone from 61% to 75%. That means that 3 out of every 4 insurance consumers are using the internet in some capacity to make an insurance buying decision. Between 2005 and 2009 independent agent market share dropped 1.6% from 35.9% to 34.3%. Not a big number until you realize that every 1% of market share represents $2.8 billion in premium or $300 million in commissions. When you look at it that way we are looking at a loss of $4.2 billion in premium or over $450 million in commission. Personal auto insurance, the most heavily sold coverage online, constitutes approximately one-third of the entire property casualty pie.

Consumers want online digital marketing backed by local professional advice and service. ProjectCAP offers consumers this access via 22,000 agencies across the country tied to the only national brand for independent agents and brokers – Trusted Choice®. ProjectCAP started right here in New York as a seed of an idea designed to make independent agents more competitive in the marketplace. That seed grew into Consumer Agent Portal LLC the entity responsible for ProjectCAP. This new entity capitalized by 6 visionary independent carriers and IIABA was created to bring independent agents into digital marketing and ultimately online sales via a consumer portal.

ProjectCAP is a two part initiative. The first part, agency marketing programs, allows independent agents to sign up for a wide range of digital marketing, training, products and services. Unlike so many “one size fits all” programs that provide a mixture of new and old technology cobbled together, ProjectCAP has designed a range of cutting edge digital marketing packages recognizing the diversity of experience and knowledge among independent agencies. Packages range from programs designed for agencies that can work on a do-it yourself basis to premium packages for agencies that want to take the “done for you” approach.

Part two is the launch of the consumer portal in mid-summer. Using the Trusted Choice® brand ProjectCAP will be designed as a national Web portal. The portal will address the insurance consumer’s desire for knowledge, choice and comprehensive service. The portal will offer consumers local marketing by directing them to local agents that meet the criteria they have outlined as important to them. Participating agencies can expect exclusive, real-time access to consumer leads.

ProjectCAP promises to be a real “game changer” allowing independent agents to take back market share. Using the agency digital marketing package of their choice agents will be able to develop in their agencies the necessary digital marketing tools, education, content and services to get them properly prepared to operate in today’s marketplace. With that preparation achieved they will be totally prepared to handle the consumers who are directed to them via the consumer portal.

Independent agents have waited for some time for the tools and support that would allow them to take back the market. We know we offer consumers the best method for purchasing insurance and now we will be able to capitalize on it as we move into the digital age. Don’t wait, jump on board with ProjectCAP and be a part of the future. But buckle up as it should be a wild and exciting ride ending with independent agents and brokers returning to their rightful place as a major factor in the insurance buying marketplace.