Do customers still need an insurance agent?

This article https://obau.pl/nowe-technologie-powinny-wspierac-agenta-a-nie-go-zastepowac-michal-miklewski-z-wiener/ This is an interesting contribution to the discussion about customer service in insurance. I believe that technology will take a long time to completely replace agents. However, the replacement process will depend not on technological advancements that reduce company costs, but largely on the agent's role and usefulness to the consumer.

Available technologies can fully replace most of the tasks performed by agents. In turn, customers typically receive a policy renewal with a question about whether or not they accept it. Claims are rare, and even when they do occur, they are not handled by an insurance agent. Furthermore, claims settlement is often a highly automated process.

So – why does a client need an agent?
Many agents provide truly excellent service and are able to build strong, lasting relationships. However, there are many examples of poor or even very poor customer service. Our research shows that failure to properly identify needs, misplaced documents, or failure to remind customers about deadlines are real situations that should never occur. Automation in such situations will never make a mistake. In some cases, customer service is so poor that it's tempting to conclude that agents themselves will be the greatest catalyst for service automation and their replacement. Here are a few examples from the service industry:

❌ A debt collection agency is collecting PLN 9 because the agent didn't remind the client about the additional payment. When the client asks why this happened, as it's an inconvenient situation for the client, the agent blithely states that he "reminded me once," but then the system sends it automatically. So, nothing happened. We're building a relationship in a fun way.

❌ The agent can't find the client's policies in his own office. After 30 minutes, the embarrassed client gives up and asks for them to be sent back by email.

❌ The agent cannot explain the differences in the policies.

❌ It's impossible to get a response via email. A phone call is necessary. Due to the client's high level of activity, it's impossible to schedule a time for such a call. The matter remains unresolved. It was about upgrading the policy. 

❌ The agent does not ask about other products and needs in situations of large sales opportunities or cross-selling.

And many other examples…

What are the conclusions?

👉 Currently, the work of some agents comes down to "your policy is ending”, and this can be done without any problem
completely automate.

👉 Relationship building often does not take place at all, which undermines the argument that the agent is a guarantor of building a relationship, which is key to sales.

👉 Many agents will ultimately be replaced by automated machines. However, advisory agents will certainly remain. Their work will be appreciated and needed by the customer. It will be important to the company's strategy and build high quality for the customer.

👉 Agents rarely utilize cross-selling opportunities, thereby undermining their role. This is an area that often receives the lowest customer service ratings during mystery shopping studies.

But What about consumer needs? Is automation something every consumer expects? In my opinion, no, because:
✔ Customers need human contact and conversations.
✔ Insurance is complicated and customers don't really know what to ask. Sure, a bot can help, but not all customers and not in all areas.
✔ Personal relationships are important to some peopleAnd the opportunity to talk about casual topics is also a client need.

Paradoxically, this is a good time for agents who sell actively and are able to build relationships with clients.

This is why what insurers should focus on today this:

✅ accurate identification of customer needs and paths (CJM), in various processes in which the consumer participates, so that the work of agents responds to the real needs of the customer.

✅ focus on a broad perspective of the consumer and his needs, e.g.: extending the policy is only a point of contact, not a goal in itself.

✅ create service models and standards that truly put the customer at the center of attention. It is important to include sales channels in this standard and adapt the standard to the capabilities of agents or multi-agents.

✅ constantly monitor the service offered by agents in the form of, for example, mystery shopper or satisfaction surveys and respond very quickly to hot spots.

✅ examine the needs of agents/multi-agents, educate, show real opinions and experiences of consumers and provide sales support tools.

This approach will ensure greater sales precisely by taking advantage of the good work of agents, their knowledge and experience, and not replacing their work with machines.