CUSTOMER SERVICE FOCUS
CSRs will play a more important role in the future as their responsibilities expand
By Jim Cuprisin, CIC, ARP
The CSR's position is the most customer-critical in an agency. On the phone or face-to-face, CSRs play a vital role in the growth and profitability of insurance organizations of all sizes.
They sit in the hot seats, as directors of their agency's "Command Central" or as the company problem-solver and sounding board. Today's insurance customer service professional (aka the CSR) is required to have the answers when clients call and is expected to treat each customer as if his or her account is the only one that matters at that moment in time.
Customer service representatives comprise approximately 46% of all independent insurance employees, according to the "2002-2003 Growth and Performance Standards" study published by The Academy of Producer Insurance Studies. Their position is the most customer-critical in an agency. On the phone or face-to-face, CSRs play a vital role in the growth and profitability of insurance organizations of all sizes. It is this reality that has resulted in the introduction of a regular Rough Notes feature--"Customer Service Focus."
To keep a finger on the pulse of this profession, The National Alliance for Insurance Education & Research will contribute articles on the management and/or technical and service aspects of the job. This month's premiere article offers an overview of how the roles of CSRs are changing--for the better.
Advancement
In which areas are CSRs anticipating career advancement? According to the study published by The Academy of Producer Insurance Studies, The CSR Profile: Facing Challenges in Customer Service, about one-third of the CSRs surveyed are planning to advance from their servicing functions into other areas of the agency. They expect to advance into the following areas:
| Areas | % CSRs |
| Office management | 42% |
| Sales | 35% |
| Marketing | 15% |
| Agency ownership | 9% |
| Other | 13% |
Some of the other areas include positions in automation or computer management, risk management, employee benefits, employee training, and consulting. Some CSRs are also considering career changes into underwriting or claims adjusting jobs with insurance companies.
CSRs foresee advancement because many of them are optimistic about the opportunities within the industry. Specifically, 40% of CSRs surveyed believe there is more opportunity for them in the insurance industry now than three years ago. Many CSRs have proven themselves over the years by providing superior service and performing well when given the opportunity to move into management, sales, or some other type of position. Agency owners and managers would be wise to allow CSRs to reach their full potential by giving them the opportunity to grow professionally. The CSRs and the agency will all benefit.
Sales
Agency owners are always searching for new producers and need to look to their CSRs more often for possible sales potential. Many CSRs already do a limited amount of selling, and some have the experience, knowledge, personality, and motivation to be successful insurance producers.
Of the CSRs surveyed, 83% are active in sales. They are not full-time producers, and the servicing work is still their number-one priority. However, they do contribute to agency growth and profitability with their sales efforts. CSRs with the greatest sales ability should be allowed to work more in the sales arena, with others being assigned to more of the servicing functions.
Regarding sales, 80% of all CSRs are active with cross-selling and/or account rounding. Cross-selling and account rounding help to increase agency revenues as well as improve overall retention. A client with several policies with the agency is more likely to remain with the agency than a person or business that has just one policy with the agency.
Skills
CSRs need a number of skills to perform their jobs well, and communication skills are paramount. Much of their time, energy, and emphasis is spent communicating. In an average day, CSRs spend their time in the following ways:
| Tasks | Time Spent |
| Performing various paperwork or computer duties | 46% |
| On the phone with clients | 28% |
| On the phone with insurance company personnel | 15% |
| Talking face-to-face with clients | 10% |
| Other | 1% |
Customer service representatives spend about half of their day talking with clients and insurance company personnel. The other half of their day is consumed with paperwork and computer duties; but even here, writing letters and the increasing use of e-mail demand first-rate communication skills. Both good verbal and written communication skills are essential to provide top service for agency customers and the insurance companies the agency represents.
The roles of CSRs are expanding because CSRs are taking the initiative with professional development opportunities to increase their skills and knowledge. They can offer better service to their clients and increase their servicing volume to become more valuable to their agencies, increase their compensation, and open doors
of opportunity.
What are the servicing skills in which CSRs feel they most need improvement? According to the survey, CSRs identified the following areas most often (more than one answer was permitted):
| Servicing Skills | |
| Effective questioning - probing | 40% |
| Developing accounts | 35% |
| Handling complaints | 26% |
| Follow-up | 23% |
| Active listening | 16% |
Determining customers' needs, handling complaints by solving their problems, following up on all details of an account, and listening to their clients to properly address their needs ranked as the most important skill areas where CSRs are trying to improve. Success in these areas can lead to further development of accounts, higher account retention, and customer satisfaction.
CSRs also recognize the need to improve some of their personal business skills. Regardless of their career goals, improvement in these areas should help them individually, as well as the agencies for which they work. Survey results uncovered the business skills in which CSRs indicated they most need improvement:
| Business Skills | |
| Dealing with stress | 49% |
| How to give and take criticism | 38% |
| Techniques in time management | 29% |
| How to say no | 28% |
| How to sell | 22% |
Skills such as dealing with stress and criticism and managing their time are not unique to CSRs, but are important nonetheless. CSRs must know when to say "no" if they are to work on their top priorities and manage their time well, or if they receive unreasonable requests from clients, underwriters, or producers that simply cannot be met. CSRs also want to boost their selling skills, whether they just do a small amount of cross-selling and rounding accounts, or whether they plan to advance to the role of a producer.
Knowledge
In addition to improving their skills, customer service representatives are working hard to increase their knowledge. One way to do this is through earning professional designations. The Academy's survey was skewed towards the more experienced CSRs, and of this group, 79% had obtained the Certified Insurance Service Representative (CISR) designation. Another 11% had achieved the Certified Insurance Counselor (CIC) designation. Other designations that many CSRs have earned include CPIW, ACSR,and CPSR.
Most CSRs in the survey also had to attain the required knowledge to pass a licensing test, as 97% of the CSRs surveyed are licensed, with most of these being P&C licenses. In addition, CSRs are continuing to take some business-related college courses to help them with their career and are attending sales seminars if they have the drive and ability to move towards a greater involvement with insurance sales.
Experience
Customer service representatives have been shown to be skillful and knowledgeable individuals who are focused on helping their clients. Survey results also show that CSRs are loyal individuals. CSRs in the survey have, on average, 17 years of experience in the insurance industry and have been with their present employer for a full 10 years. Many CSRs have chosen to remain with their employer for a number of years, being thankful for the opportunity they were given, but also seizing opportunity to work where they are appreciated and where there is opportunity for advancement.
Above all else, customer service representatives must be caring people who are genuinely concerned about their clients' financial well-being and work towards preserving individuals' personal income and health, and the stability of their businesses. CSRs must like working with people to find out what their needs are and help them obtain the security for these needs. Survey results back this up. When asked about the most rewarding aspect of their job, working with people was number one, as the following results detail:
| Most Rewarding Aspects | |
| People contact | 55% |
| Diversification of tasks and duties | 44% |
| Organizational skills and detail work | 29% |
| Professional development | 24% |
| Changing industry and need for continuing education | 12% |
| Other | 7% |
The Future
CSRs have made an impact in the past, but their influence should be even more pronounced in the future. Agency owners and managers are more often realizing the potential these individuals possess and giving them opportunities to further their careers. CSRs are taking advantage of these opportunities by improving their skills and increasing their knowledge to do their jobs better. In addition, many CSRs are seeking advancement to other agency positions by enhancing their sales and/or management ability. The National Alliance for Insurance Education & Research, along with Rough Notes magazine, hopes to contribute to the success of CSRs and their agencies through "The Customer Service Zone" with information of special interest to CSRs and those who manage them, helping to explain the pivotal roles of CSRs.
The author:
Jim Cuprisin, CIC, ARP, is the research director for The Academy of Producer Insurance Studies. In addition to his 15 years with The Academy, he has six years of experience as a personal lines underwriter with two insurance companies. The Academy is part of the National Alliance for Insurance Education & Research. For information on the Certified Insurance Service Representatives (CISR) program, or the Dynamics of Service and Dynamics of Selling programs, call The National Alliance at (800) 633-2165, or visit their Web site (www.scic.com).