When we talk about the affordable care act, insurance and customer service, there are many unknowns and changes to consider. However, we must not forget that since carriers began writing insurance directly, the local insurance industry has had to shift the way they do business entirely. Overwhelmingly, when it comes to customer service in this industry, the local insurance agent is no stranger to change.

Gone are the days that producers can depend on auto-renewing policies and going about business without taking the time to create and maintain a relationship. Every day, consumers hear how they can save 15% here, cut cost there, and what was once sold as protection and peace of mind is now sold as a commodity- a piece of paper. When people look at their monthly budget, one of the first items that they feel can be cut back is insurance, when in fact, their policy should be a key part of their financial plan. Now, with health insurance a main topic of conversation as a result of health care reform and the affordable care act, it needs to be a large portion of what local agencies talk about as well.

What Is Customer Service for the Insurance Industry?

In the wake of health care reform and the affordable care act, many local insurance agencies may be asking themselves how they can compete with major carriers when it comes to creating a high-touch, interactive and engaging customer experience. If nothing else, consider these two pieces, especially when it comes to health care reform and the value your agency can bring to the table:

• 1-Win the relationship. Each and every time the phone rings, an agency needs to win the relationship from the start. Many people have a difficult time justifying the price of something that is intangible; in an age of ‘what have you done for me lately,’ paying a high premium for what might happen isn’t an attractive option.
• 2-Let Your Expertise Be Known. The benefit of working with a local agent is education. An individual may not have experienced the difficulties of not having enough coverage or may be confused from the start and the amount of media exposure directed at scaring or misinforming the consumer has only made it worse. The local agent can sell the appropriate coverage by using personal stories unlike a direct writer who has no direct contact with the end user.

As a local insurance agent, you already know that the major point of pain for policyholders is the confusion surrounding The Affordable Care Act.

• Individuals are unclear about the status of their coverage
• Individuals are unclear about the certainty of their doctors
• Individuals are wondering if their employers will drop their health benefits
• There are perceived and real difficulties of using Healthcare.gov, or if available, the State Exchange for individuals and businesses alike

Customer service in the local insurance industry means not only being aware of these pain points, but accurately responding to them.

Is Your Agency Prepared?

With their family’s healthcare on the minds of every individual, people are concerned and need the support of someone looking out for their best interests. Having a local expert who understands the health insurance landscape with the answers to the many questions out there is absolutely necessary.

As a local agent, they have the facts and experience to educate the consumer and walk them through the process to ensure that they are properly covered. For someone who is unfamiliar with using the internet or is uncomfortable with putting their personal information online, the ACA websites can be very unsettling and they need the help of an expert.

Remember: The discussion on health insurance right now is bringing insurance to the forefront of the nation’s consciousness. This is great for the local agent.

Pro Tip: Be THE center of knowledge for not only the Affordable Care Act but all insurance. This is a great opportunity for the local agent to create a completely rounded client, not only health insurance, but home, auto and even umbrella. These kinds of policies will help to increase overall pif rate – which will increase agency retention rate and complete agency health.

After all, this conversation started with health insurance, didn’t it?