How Can Insurance Agencies Create a World-Class Producer Experience? It Starts with Tech, Transparency, and Trust

If insurance producers are the lifeblood of your business, you need to compete on producer experience—and win.

One could argue the entire insurance industry is a web of interdependent players, ranging from the carriers that create products to the agencies that distribute them, to the consumers who purchase them. While this is true, it’s also a fact that licensed insurance agents, brokers, and producers (whichever name they go by) are a key link in the chain.

As the insurance experts who get the products into consumers’ hands and money into agencies’ and carriers’ pockets, producers are the lifeblood of any insurance business. So, if treating them like the MVPs they are is just common sense and good business, why do so many insurance carriers and agencies still expect producers to jump through hoops to work with and for them?

Producer experience is something every insurance business should be paying close attention to, and it’s only becoming more important as the average age of the insurance workforce climbs higher each year. With an estimated 400,000 open insurance industry jobs by 2026, there won’t be nearly enough new people entering the industry to replace those who depart it.

This means competition for top insurance talent is only getting fiercer. And, as the money-makers they are, producers will be able to name their demands when it comes to the way they work.

Evidence Shows Producers Value More than Money

Anyone working in the insurance industry knows anecdotally that producers are a special breed. At their best, they’re driven, customer-obsessed, product experts who’ll do anything they can to win and keep business. While stereotypes can make them out to be driven purely by sales and profit, the reality is most insurance agents, brokers, and dually licensed broker-dealers (collectively, producers) are in the business of helping people secure a financial safety net for themselves, their families, and their businesses.

For insurance agencies, carriers, and MGAs that want to work with the highest-performing producers, it’s tempting to believe that offering the best pay and commissions is all you need to do. But this belief is a mistake that can cost you, particularly as the battle for insurance talent intensifies.

Data shows that when deciding which agencies to work with and which carriers to sell for, producers actually care about a lot more than just money.

In its 2022 industry-wide survey of 16,000 producers, the software company Appulate found that agents are actively choosing to do business with markets that make their jobs easier and more efficient, while avoiding those that require tedious, manual, and repetitive tasks.

What this means in practice is that agents are starting to prefer working with wholesalers and MGAs above traditional carriers because the former have proven to be more tech-forward, often providing a more frictionless experience.

Legacy insurance carriers shouldn’t give up hope, however. The survey’s findings show agents are inclined to work with distribution partners that make their jobs easier, regardless of their type. This means the key to scoring the best producers isn’t being the biggest name or the most established industry player; it’s creating the best producer experience.

Three Key Ingredients for a World-Class Producer Experience

If creating the best possible producer experience were easy, everyone would be doing it, right? The truth is, it’s easier than you might think when you focus on three key ingredients. With the smart use of transparency, trust, and technology, any insurance business can transform its producers’ experiences from one that turns them away to one that turns them into raving fans of your partnership. Here’s how.

1. Transparency

No one likes being in the dark, yet insurance producers often are when dealing with a variety of their daily functions. A few of the most painful examples include trying to onboard at a new agency, get contracted with a carrier, or waiting to receive their commissions.

Now, imagine if your organization had the power to provide each producer with a clear view of what they need to do (and when), where they sit in a process at any given moment, and what information is still needed. This level of transparency into producer onboarding, licensing, carrier appointments, and more is a vital first step toward wowing producers with a different level of experience.

2. Trust

Transparency and trust go hand-in-hand. When you practice transparency, you build trust. And without transparency, it’s nearly impossible to maintain it. Still, having access to information isn’t enough to build and maintain trust in and of itself: The information also has to be accurate and reliable. This is where real-time data from company-wide and industry-wide sources of truth matter.

For example, when a producer is in the dark about an upcoming license renewal and the fact that they need to complete some continuing education (CE) hours before they can renew, that’s a lack of transparency. But it’s not much better if a producer gets alerted about an upcoming license renewal without information about the necessary CE credits. Or if the alert isn’t timely. Or if the alert references a state the producer isn’t even licensed in anymore. You get the idea.

It’s only when you combine transparent visibility with accurate information that you begin to build trust.

3. Technology

Technology can be the link that ties it all together. Having the right technology in place can enable transparency that builds trust between stakeholders and facilitates better relationships all around. The “right technology” means systems that work in real-time and draw from accurate data sources.

When you use technology to provide producers with access to accurate information that’s easily visible, increasing trust between the producer and their upstream partners, that’s the start of a world-class producer experience.

Stand Out from the Competition with Trust, Transparency, and Tech

Why everyone isn’t focusing on creating the absolute best producer experience possible is still a mystery, but one that gives those who do prioritize it a real competitive advantage.

For insurance carriers, agencies, MGAs, and others that want to ensure they’re not victims of the impending insurance talent shortage, investing in technology built on transparency and fostering trust is a winning bet.

You can do this with DOXA for producer onboarding, license management, continuing education, carrier contracting, and more. Even better, you can extend the same level of transparency and trust through integrated commissions. By moving beyond simply paying commissions and enhancing that complimentary and connected process, you can further differentiate the experience.

For more information on this, have a look at best-in-class tech partner, Varicent, and their article on using transparency, trust, and technology in the commission payment process.

Contact us to get started on the path towards creating a producer experience that’ll set your business up for success now, and with the next generation of producers soon to come.