Nov 124 min read

InsurTech Ohio Spotlight with Jeremy Coffman

Jeremy Coffman is Head of Strategic Partnerships at Farmers Insurance, supporting Farmers agency owners who deliver products and services that support agency owner revenue opportunities and protect the things that matter most to their customers. Jeremy was interviewed by Michael Fiedel, Co-Founder at InsurTech Ohio and Co-Founder at PolicyFly, Inc.

Jeremy, how do you see the industry's perspective on the challenges and opportunities confronting agents and their ability to continue to evolve?

“Historically, insurance has been a product that people are apprehensive purchasing. Often it's a required product, so it's something that when people research, they have some reticence. Because it's nuanced, it's hard for them to be comfortable. It's not simply a commodity purchased like other products, so it’s important for agents to produce value for their customers.

The key idea is that customers have many purchasing options. When considering these different options, agents need to meet potential customers along their purchasing journey, regardless of where they begin that journey or, ultimately, where they purchase insurance. When a potential customer reaches out to an agent, they have won the right to support that customer, so they need to find solutions to all their needs.

You have to provide more value than core insurance products. Agents need to continuously look at their value and find additional ways to provide consultation and solutions for their customers that make them want to come back. If agents can put themselves in this consultative role with a customer, customers will keep coming back to them, which means they now have an opportunity to engage with the customer in expanded areas. For agents, it's evolving to continue to drive value. You want to be top of mind with your customers.”

How does empowering the agent further drive value for customers?

“An empowered agent appreciates their opportunity to demonstrate value when communicating with their customers, and that value creates opportunities to increase revenue and retention of these clients. At the end of the day, it would be difficult for an agent or any business for that matter to be successful if their only revenue stream is from new business.

Every agent is looking to develop recurring revenue, meaning that people are staying with you. They don’t want to simply sell a policy. They want to reach out and engage with customers at the most meaningful times. Most likely customers engage with an insurance policy and/or agent when they get their bill. That's not a great experience as we don’t want people to think solely about paying their bill every time they think about insurance.

We want engagement throughout the lifecycle of the policy. When agents connect with their customers and bring relevant products and services, it creates a unique engagement opportunity. It provides value to customers and the ability to mitigate their risk. Now, agents are continuously engaging with their customers throughout the lifecycle. It's critical for agents to be able to show that value to their customers.”

What responsibility do carriers have in driving this ongoing evolution forward for agents?

“The idea is that carriers have to realize what’s important not just to agents, but to customers. They need to provide a portfolio of products that agents can deliver. At the end of the day, we as a carrier need to provide products and services that are meaningful. It's one thing to build a relationship, but it’s entirely different to provide a seamless experience for our agency owners and their customers.

Another way we deliver value to agency owners is a best-in-class solution, whether it's coverages, pricing or customer experience. We identify best-in-class offerings that reinforce our value proposition to agency owners, and these translate value to their customers.

As carriers, we need to consider that it's not just putting a new product or service on the shelf. How does it tie into the customer experience? How is it a better experience than if the customer found that coverage somewhere else? With this, we're creating a unique value for agency owners that delivers a competitive edge over another agent who’s not working with us.”

What can agents do to capitalize on this opportunity and take advantage of the investment that their partners are making to support them?

“Every agent faces the challenge of resources and the ability to market, sell and provide service to their customers. There's always an opportunity-lost perspective, meaning if they're going to sell an additional product or service, it takes time away from what they're currently doing. The mindset needs to continue to change to a consultation, and as the agent demonstrates value to their customers, they have earned the right to ask for their business with other relevant products and services.

Agents know that there's a lot of information that comes from insuring a customer's home, auto, umbrella etc. For example, a person that is turning 65 may be interested in learning more about Medicare. Through the agency owner’s relationship with that customer for home and auto, they can ask questions and uncover this interest and, if they’re certified and have knowledge of Medicare products, can introduce the solution within this consultative process. Agents need to ensure that their customers are aware that they know the product and the customer's potential need for it.

So, how do you build in this process? It starts with having access to these products and services, which is our job as the carrier. When we introduce new products and services to our agency owners, there's a tendency to be cautious, and that’s absolutely expected. To assist agency owners, we offer training and expanded resources that create a strong understanding and familiarity with the features and benefits similar to when they first became licensed to sell insurance. This builds confidence that translates to a higher customer conversion rate for these products and services, which ultimately increases revenue and retention while strengthening the relationship agency owners have established with their customers.”