Win Modern Insurance Consumer in Turbulent Times

© 2017, Agency Revolution, All Rights Reserved
How to Win the Modern Insurance
Consumer in Turbulent Times: 
5 Simple but Powerful Steps to
Market Dominance for the
Independent Agent
Michael Jans Executive Chair Agency Revolution
Michael Jans

25.89%

25.89%
Rate 
it takes 
to grow
10x 
10YRS.

www.thegrowthanalyzer.com

But... Consumers Have Changed

get free today at www.michaeljans.com

81% Research online before shopping
http://www.chainstoreage.com/article/study-81-research-online-making-big-purchases
GE Capital

88% Trust online reviews as much as
personal recommendations
http://searchengineland.com/88-consumers-trust-online-reviews-much-personal-recommendations-195803
BrightLocal Annual 
Customer Review Survey

65% Read 4-52+ reviews
http://searchengineland.com/88-consumers-trust-online-reviews-much-personal-recommendations-195803
BrightLocal Annual 
Customer Review Survey

98.4% Check their email 
at least once a day
http://www.businessinsider.com/how-often-do-people-check-their-email-2015-8
Statista

10X to 
'Throughout the day'
http://www.businessinsider.com/how-often-do-people-check-their-email-2015-8
Statista
39%

Average use of smartphone
http://www.networkworld.com/article/3092446/smartphones/we-touch-our-phones-2617-times-a-day-says-study.html
Networkworld
145MINUTES

Separate Sessions
Networkworld
76

Check phone between 
midnight and 5AM 
at least once/5 days
Networkworld
87%

Networkworld
2617
Of
discreet
touches#

Of internet users use Facebook
http://www.pewinternet.org/2016/11/11/social-media-update-2016/
Pew Research Social Media 
Update 2016boomer
79%

Of adults use Facebook
http://www.pewinternet.org/2016/11/11/social-media-update-2016/
Pew Research Social Media 
Update 2016boomer
68%

Boomers spend 15 hours/week
online (more than millennials)
https://betanews.com/2015/10/21/baby-boomers-spend-more-time-online-than-millennials/
Limelight Networks
Not Just 
Millennials

Surpassed desktop for 
internet access in 2014
http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/
comScore Mobile Metrix, 
August, 2016
Mobile 
Phone Usage

http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/
comScore Mobile Metrix, 
August, 2016
Mobile 
Phone Usage87Hours/month 
browsing on mobile

the insurance consumer?
? AreWe 
StillWith

Quoted in the NY Times, 
January, 2016: 
"There are 40,000 agencies in the
US. You could absolutely see them
shrinking by a quarter."
Ellen Carney, Forrester; Quoted in the NY Times, January, 2016:
Ellen Carney
Forrester, Principal
Insurance Analyst

“Right now, consumers are looking for
a great experience. Other industries
have raised the bar for insurance
carriers and agents.
Consumers aren't just ready to
defect but to tell the world about
their crappy experience.
So, we're seeing a lot of startups,
obviously. We're tracking about 400
insurtech startups.”
Ellen Carney, Forrester; Quoted in the NY Times, January, 2016:
Ellen Carney

? Where’s 
TheValue

“No service above and
beyond shopping.”
60%
Sam Friedman: Deloitte,“Small business insurance in transition:
Agents diﬃcult to displace, but direct sellers challenge status quo” 
https://www2.deloitte.com/global/en/pages/ﬁnancial-services/articles/gx-small-business-insurance-in-transition.htmlSam Friedman
Deloitte
Insurance Research Leader

Small business respondents
'very' or 'somewhat' likely to
buy online
Sam Friedman: Deloitte,“Small business insurance in transition:
Agents diﬃcult to displace, but direct sellers challenge status quo” 
https://www2.deloitte.com/global/en/pages/ﬁnancial-services/articles/gx-small-business-insurance-in-transition.htmlSam Friedman
Deloitte
Insurance Research Leader
100%

? Where’s 
The
Relationship

Report that they have had 
ZERO interactions in 18 months
http://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance-survey/%24FILE/ey-global-customer-insurance-survey.pdf
EY Global Customer Survey
44%

Of insurance consumers 
are not“very satisﬁed”with
communications from their
insurer
86%

"Be ruthless with brokers who are
damaging the long-term economics
of your business."

‘…most have felt secure enough to
cede customer contact to
intermediaries. Today, however,
customer access and“ownership”are
keys to the largest proﬁts, and
insurers must ﬁght for them.’

https://www.cbinsights.com/blog/2016-insurance-tech-funding/
CBI insights
$1.7Billion
Last year, venture capital invested
$1.7 billion dollars into disruptive
insurance technologies

https://www.cbinsights.com/blog/2016-insurance-tech-funding/
CBI insights

Not Incremental, 
But 
Transformational
Change

•Venture Capital
• Conferences
• Magazine and Journals
An Entirely New Industry: 
Insurtech

Matteo Carbone
#1 insurtech inﬂuencer
“All insurance
will be insurtech.”
https://www.linkedin.com/pulse/future-insurance-insurtech-matteo-carbone

http://www.mckinsey.com/industries/ﬁnancial-services/our-insights/insurance

Where does the‘Broker’ﬁt into the 
New world?

? ? ?
Price Convenience Peace 
of Mind
1 2 3
Three values compel insurance purchase:
Digital Direct Broker
Three Major Channels:

Price Convenience Peace 
of Mind
1 2 3
Three values compel insurance purchase:
Digital Direct Broker

$
The
Moneyis in the
Relationship

$5,000,000
$10,776, 128
An Increase of $5,776,128 
in Just 5Years.
Big Future: 
10000 Clients, 
89% Retention
14% New Client
5% $ /Client
Bigger Future: 
10000 Clients, 
92% Retention
14% New Client 
10% $ /Client
Current: 
10000 Clients, 
86% Retention
14% New Client 
0% $ /Client
Growth Analyzertm
Year 1
Year 5
$7,397, 801

+Delight
At Every Stage in the Process
Attract Convert Optimize Retain
The ACOR+ Marketing Model
Prospects Buyers Clients PromotersLeads
C O RA

You can’t fix a leaky bucket by
pouring more water into it.

SEVENtimes the
lifetime customer value of
a low loyalty client and,
THREEtimes the value
of a neutral client!
Yup… SEVENtimes!*
97%
Retention
2.5
Referrals
25%
More
Insurance
The Highly Loyal 
Insurance Client

Convert
C
Optimize
O
Retain
R
Attract
A
$$$$
$$$
$$
$
Cost
Value
Leverage
Wealth and
Equity
Reliable Income
New Income
Future Income

You can't win on price.
“GEICO”
201220092008 2010 2011
$11 billion
$6
$3.5 billion
$7
$9

Industry providers divided into two camps.
2
Sells through
retail channels,
with exceptions.
1
Acquisition
marketers.
Price Driven Loyalty Marketers

“Advertising spending directly
correlates with customer acquisition
rates. The top performers in
acquisition spend 50% more than
average on advertising per customer.”
http://www.bain.com/publications/articles/customer-loyalty-and-the-digical-transformation-in-p-and-c-and-life-insurance.aspx
Bain and Co.

You're best suited to win on peace of mind,
and those customers will reward you richly.
Good news:

How much money is in the relationship?
referrals
retention
size of purchase
share of wallet

High loyaltyMid loyaltyLow loyalty
Retention 74% 88% 97%
Value on 
$5mil/10yrs.
$18mm $30mm $44mm
1-6 7-8 9-10

Share of insurance wallet: 10% more
81%
84%
86%
88%
Low Loyalty High Loyalty
80%
88%

Likelihood to buy more from same provider:
5.9 times greater
15%
30%
45%
60%
9%
53%

Amount of insurance purchased: 25% more
0%
33%
65%
98%
130%
1.25
1

Number of referrals:
250% more likely than neutral clients
0%
75%
150%
225%
300%
2.5
1
0
Low Loyalty Mid Loyalty High Loyalty

Highly Loyal
Insurance Client
Refers 
2.5

“Promoters beget promoters…
Referrals from an existing customer
to other potential customers, play the
biggest role in building customer
lifetime value.”
http://www.bain.com/publications/articles/customer-loyalty-and-the-digical-transformation-in-p-and-c-and-life-insurance.aspx
Bain and Co.

The Big Lesson:
High LoyaltyLow Loyalty Mid Loyalty
LifetimeValue
Clients
7 times
theValue
3 times
theValue

“But I have to sell on price.”

0.1
0.3
0.4
0.5
0.20
0.13
0.24
0.43
1st 2nd 3rd 4th & 5th
Which quote gets approved by the consumer?
EZLynx. Brady Polansky presentation to ACT. February, 2015.

0
0.15
0.3
0.45
0.6
0.53
0.45
0.37
0.19
2nd 3rd 4th 5th
How much higher are subsequent quotes?
EZLynx. Brady Polansky presentation to ACT. February, 2015.

Bridging
the gap, 
What not
to do

Bridging
the gap, 
What not
to do
Do not run home and try harder 
(You're already trying)

Bridging
the gap, 
What not
to do
Do not make more outbound calls

Don't want phone calls from 
their insurance provider
https://www.mblox.com/wp-content/uploads/2016/04/Mblox-The-Insurance-Industry-Factor.pdf
Mblox: Closing the Care Gap: 
The Insurance Industry Factor
84%

"...the economics of the 
traditional agent model are
beginning to unravel."
 
Agents of the Future: The Evolution of Property andCasualty Insurance Distribution 
https://www.iiaoﬁl.org/Portals/0/Documents/FutureAgents_V_FINAL.pdf
You 
can’t call
anyway:
McKinsey, 
Agents of the Future:

From 
Passive 
to 
Active
From 
Missing 
to 
Meaningful
From 
1-to1 
to 
1-to-many
From 
Impossible 
to 
Automatic
Obsess 
over your 
customer 
experience
1
2 3
5 Step Plan to Protect & GrowYour Agency
4 5

1
Obsess over
customer
experience
Your customer 
is your most valuable asset
Your most valuable asset 
is a LOYAL customer
Earn their loyalty

2From 
Passive to 
Active
Don't anxiously wait for 
the phones to ring
Relationship is communication
Take control

3From 
One-on-one
to One-on-
many
1-to-1 is not just expensive. It’s too
expensive.
Segment broad groups. (‘home no
auto,’etc., etc., etc.)
Ask yourself: what can I say to this
group that makes their lives better?

4From 
Missing to
Meaningful
Advanced marketers know that the
magic is more in giving than getting
Personalize communications
Speak to what your customers 
care about

5From
Impossible  to 
Automatic
Deliver the right message to the right
person at the right time
Guide them through their 
customer journey
‘Scaling communication:’ 
Only technology makes this possible

How can
technology 
make this
happen?

ROI from email marketing
The Direct 
Marketing Association
43:1

1• Integrate with your agency 
management system

2• Trigger messages automatically
new
lead
new
customer
claim
open
claim
closed
happy
birthday!
policy
renewal

3• Segment your book to cross-sell
your book of business
example:
home no auto

4• Always add value
Disaster
preparedness &
warning
Agency Newsletters

5• Use responsive design
For your website and marketing emails

Conclusion:

1.Consumer behavior has changed - radically
2.Insurtech wants to take advantage of those changes
3.Consumers are doubting if we can fulﬁll our 
promise of relationship
4.Only technology can 'scale relationship’
• By taking what you have 
- advice, advocacy and caring 
- and making that real in the lives of real people

10X:U - Michael’s Personal Rules for
Multiplying Personal Productivity
1Only do what’s most important
2Ritualize everything
3Scale with technology
4Keep score

Win Modern Insurance Consumer in Turbulent Times

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