Customer service in an automated world

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As AI reshapes the insurance industry, Victor Insurance emphasizes the essential role of human connection, asserting that agents remain vital for navigating coverage complexities while providing personalized support and ensuring clients feel valued

Advanced technologies are reshaping the insurance landscape, and insurers are discovering new ways to serve clients more efficiently. From automated underwriting to predictive analytics, tech-driven tools have transformed everything from claims handling to customer interactions. This wave of innovation has led some to question the future role of insurance agents and customer service, with speculation that automation might make human involvement obsolete as the industry shifts toward a direct-to-consumer (D2C) model. However, Zach Vollmer, director of digital distribution at Victor Insurance, and Mike Ferber, head of small business at Victor Insurance, share a different outlook on the evolving insurance landscape.

Victor Insurance Managers LLC is one of the largest and most experienced underwriting managers of specialty insurance programs in the world. As an elite specialty insurance provider, valued service, innovation, and expertise all lie at the heart of our business. With a range of essential and specialized solutions, including professional liability, management liability, small commercial, and specialty p/c, Victor is ready to help your clients grow their businesses with confidence. Victor Small Business is the insuretech arm of Victor Insurance, providing agents the opportunity to compare quotes for multiple coverage lines from multiple A-rated providers using the online platform Victor for Agents.

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Mike Ferber, Victor Insurance

Put simply, insurance is nuanced, and having the ability to bounce questions off a knowledgeable representative can make all the difference between securing a quote and facing a declination. Reflecting on his initial experiences at Victor five years ago, Ferber shared, “The prevailing narrative was that digital technology would eliminate the need for agents. However, at Victor, we firmly disagree with that assertion. There will always be a vital role for agents in this industry.” Accordingly, Victor’s overall strategy focuses on meeting clients where they are, whether through in-person meetings, emails, online chats, or phone calls. This commitment to flexible communication ensures that client needs are addressed promptly, reinforcing Victor’s dedication to personalized support and effective interactions.

For small and medium-sized enterprises (SMEs), personalized one-on-one agent support is crucial. Ferber highlights that even a minor gap in insurance coverage can have severe consequences for smaller businesses, which lack the financial resilience of larger companies. Given their vulnerability to risks ranging from liability to cyber and business interruption, agents can help SMEs find the coverage that is right for their exact needs. While automation can offer significant cost savings for both small and large businesses, it’s essential to ensure that the customer experience doesn’t suffer as a result. According to recent data from McKinsey, customers might be looking for more in-person interaction, as only 20 percent opt for digital channels as their primary way of communicating with insurers. Highlighting another reason agents are essential, Vollmer emphasized that their greatest benefit lies in their role as risk advisors. “Agents don’t just help you find coverage

and mitigate losses – they act as risk managers,” he explained. As relationships with clients grow, underwriters and insurance professionals focus on finding the best, not just the quickest or cheapest, solutions for their clients – something automated algorithms might be programmed to prioritize.

While insuretech tools offer many advantages, particularly in speeding up tasks like policy quoting and claims handling, they also have their limitations – especially when it comes to property valuation. Ferber points out that automated systems often miss critical details, such as home upgrades or custom finishes, leading to policies that either overinsure or underinsure clients. For instance, if an automated tool pulls a valuation for a property without considering recent renovations or unique features, the result could be an inaccurate estimate of the coverage needed. However, an agent, through personalized questions like, “What kind of finishes or custom work does the property have?” can ensure that coverage reflects the true value of the asset.

“When asked why Victor agents consistently return, they cite our exceptional Victor for Agents platform. It's our dedicated business development and service representatives – trusted individuals they know by name – that foster lasting relationships and provide reliable support”

Zach Vollmer, Victor Insurance

“When asked why Victor agents consistently return, they cite our exceptional Victor for Agents platform. It’s our dedicated business development and service representatives – trusted individuals they know by name – that foster lasting relationships and provide reliable support,” added Vollmer. Ferber emphasized, “If you want to talk to somebody, it’s right there and available to you. You don’t have to click through seven layers of menus before you get to talk to somebody.” To learn more about how Victor Insurance can help support your clients’ needs, click here.

Why agents matter

Navigating limitations in automated valuations

Published November 4, 2024

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“Human intervention – an agent who knows the local market, has visited the business, and understands the nuances of surrounding businesses – can reassure carriers to write risks in a way that automation alone might overlook, offering a level of insight and assurance that technology cannot replicate,” Ferber emphasized. The key to integrating technology is striking a delicate balance. Ferber and Vollmer both stress the importance of knowing when to outsource time-consuming tasks to automation, allowing agents to focus on high-value activities and gain more face time with clients. This balance ensures that technology enhances, rather than replaces, the human element in insurance.

Striking the right balance: empowering agents with technology

Victor Insurance is committed to achieving this balance through Victor for Agents, an online quoting platform designed for agents at all experience levels. The tool seamlessly integrates automation with live assistance, helping agents quote and bind in just minutes. Summarizing the platform’s adaptable nature, Vollmer says, “For agents who prefer self-service and want to embrace automation, we provide that experience. However, for those who prefer or may need a more engaged approach, our team members are readily available to assist with the quoting process.” By equipping agents with the essential tools they need to thrive, Victor for Agents empowers insurance professionals to enhance their skills and deliver exceptional service to clients.

Customers still value personal connections

Source: https://www.mckinsey.com/industries/financial-services/our-insights/insurance/elevating-customer-experience-a-win-win-for-insurers-and-customers

Only of customers say that digital channels are their top choice for interacting with their insurer

20%

Benefits of Victor for Agents:

Fast, intuitive platform for quoting multiple lines of business Real-time bindable quotes with single data entry No annual broker fees and pre-filled ACORD applications Offers payment plans and online payment options Access to tech support and quoting help via online chat