Survey Results Show Insurance Agents/Brokers Prefer Internet As a Customer Service Tool

N/Ace agents and brokers in the property and casualty industry see the Internet as an effective customer service tool, but a smaller number are using it for sales and marketing, according to a recent survey on Internet utilization.

The survey was conducted with an audience response system at the Third Annual <%=company%>, the premier alternative market event hosted by <%=company%> in Philadelphia. The interactive session was moderated by Mark L. Walsh, CEO of VerticalNet, Inc., PropertyAndCasualty.com's owner. Walsh is a former America Online executive who helped build AOL's business-to-business division.

The survey of insurance brokers, regional agents and managing general agencies, found that most are already using the Internet to describe their products and services, recruit top industry talent and position their agencies as leaders within their market niches.

However, fewer respondents said they were using the Internet as a sales tool: 28% have found a sales prospect, 9% have found a client and 5% have closed a sale.

43% of respondents said the Internet will best serve the property and casualty insurance industry as a customer service tool, while 11% said the Internet will be used for information gathering only. Another 11% said the Internet should serve as a resource tool to locate hard- to-find coverage, 26% said the Internet should be used for online applications and the remaining 9% said the Internet will be useful for online claims submittal.

"There is tremendous potential for the Internet as a distribution channel in the property/casualty industry in coming years, so it's important to understand how it will affect the role of agents and brokers," said Reginald Pierce, ARM, Commonwealth Risk vice president, marketing and communications.

Nearly half of the agents surveyed said they use the Internet everyday and 80% said they have found information online that traditional business news sources did not provide. Three out of four companies said they have a web presence. Among the other results:

• 52% have never made a purchase over the Internet
• 31% have made at least one purchase on the Internet
• 8% have made many online purchases
• 8% make online purchases regularly
• 48% use the Internet everyday
• 25% use the Internet a few times a week
• 13% use the Internet a few times a month
• 14% never use it

The Annual Producers' Forum is a venue for insurance agents, brokers and reinsurance intermediaries interested in advancing their knowledge of today's risk financing marketplace. The Forum delivers the most advanced topics, qualified speakers and networking opportunities the industry has to offer.