Canadian Independent Producer Survey: Technology, Services, and Other Drivers of Carrier Choice

Create a vendor selection project & run comparison reports
Click to express your interest in this report
Indication of coverage against your requirements
A subscription is required to activate this feature. Contact us for more info.
Celent have reviewed this profile and believe it to be accurate.
6 May 2005
Craig Weber

Abstract

Boston, MA, USA May 6, 2005

Insurance

Independent agents say underwriting speed and support are key to their decisions to place business with one carrier versus another.

Independent agents in a new Celent survey stressed speed, new business and underwriting support, and ease of application completion as critical drivers of carrier choice.

"Canadian life insurance agents have unique needs," says senior analyst Craig Weber, author of the latest Celent report, Canadian Independent Agent Survey: Technology, Services, and Other Drivers of Carrier Choice. "In a market dominated by relatively few players, its important for carriers to understand those needs thoroughly, and to offer services and technology that will help generate agent loyalty."

Weber notes that the top-ranked drivers for Canadian agents are similar to the drivers cited by U.S. agents, but they are not identical (see table below). "Underwriting speed really stands out as a driver," Weber says. "Agents are results oriented when it comes to new business processes. They want to submit cases easily, have thorough follow-up, and quick decisions that they can communicate to their clients."

A question about agents favorite carriers also produced fascinating results. "Six carriers topped the list," Weber said, "including Standard Life*, Manulife, AIG*, Canada Life, Empire Life, and Transamerica." Weber says these carriers "appear to offer the right combination of products, pricing, speed, technology and underwriting relationships to produce solid agent relationships."

The 44-page report, which is based on a survey administered to independent agents in March 2005, also provides detailed insights on a variety of specific technology and service issues. Other key findings discussed in the report include.

  • How "carrier concentration" (i.e., producer willingness to place business with few carriers) varies by line of business.
  • The impact of new business cycle time on policy placement rates.
  • How "old school" tools like telephone and fax are still used by most producers to perform everyday tasks.
  • How producers are willing to use a mix of proprietary and non-proprietary tools for application entry and other tasks.
  • How producers rank typical distribution technology initiatives, such as single ID sign on, proprietary agent portals, and online agent tools.

A table of contents is available online.

* Standard Life and AIG invited their independent producers to participate in the survey, which may have influenced how often they were cited as favorites.

Ranking Of Carrier Choice Drivers
Assume for a moment that your carriers all have identical products at identical prices. From the following list, select the three most important items in terms of your decision to do business with one carrier versus another.
Rank

Item

% Respondents Voted Top 3 (Canadian agents)

Respondents Voted Top 3 (U.S. agents)
1 Underwriting speed 62% 48%
2 New business and underwriting support 49% 58%
3 Ease of completing the application 38% n/a
4 Commission rates 31% 32%
5 Marketing and sales support 29% 53%
6 Policy delivery speed 27% 20%
7 Client services provided 27% 37%
8 The way claims are handled 15% 11%
9 Web-based tools provided by carrier 15% 23%
10 Commission cycle time 8% 9%
11 Carrier support for agency management systems 8% 5%
Source: 2005 Canadian Independent Agent Survey n = ~450

of Celent Communications' Life/Health Insurance research service can download the report electronically by clicking on the icon to the left. Non-members should contact info@celent.com for more information.

Subscription required

Access to this content requires a Celent research subscription.

Subscribers should sign in to access this research.

Insight details

Content Type
Reports
Location
Asia-Pacific, EMEA, LATAM, North America