Customer Service Focus
Key players on the insurance team
CSRs can make or break an agency-client relationship
By Peggy Lund, CIC
Customer service affects all aspects of the insurance business. Good—or bad—customer service can be a determining factor in an agency’s success in securing and retaining clients and building a profitable firm.
The focus of the reputable agency or insurance company is to protect the client’s property and assets by offering coverage that will compensate the client for injury, damage or loss to property, or for liability for damage or injury to others, in return for premiums paid.
In addition to determining the type and amount of insurance coverage a client needs, it’s important to assess the client’s business practices to determine what type of risk management procedures can be implemented to prevent a loss, reduce the negative effects of a loss, or control any situation that would put the client at a higher risk of loss.
The adage, “Behind every successful man is a woman,” can be rephrased: “Behind every successful agency is an effective customer service team.” In order to obtain new customers and retain current customers, the successful insurance agency needs an edge over the competition; and in many cases, that edge is the relationship developed by providing a product tailored to the client’s individual needs and the service to support the client’s day-to-day risk management and insurance needs. With this in mind, it’s important to know what to look for when hiring a customer service representative.
Hiring the best
An article in the Harvard Business Review stated that for every customer lost, companies must spend six times more revenue on acquiring a replacement than it would have cost them to incorporate customer loyalty strategies into their marketing efforts. Hiring the best qualified personnel with positive character and personality traits not only benefits clients, but it also plays a major role in the agency’s profitability, success and reputation.
As the successful agency increases its revenue and client base, the right balance of personnel is necessary to provide excellent service while maintaining a manageable workload for employees. When considering experienced candidates for CSR or account manager positions, it’s important to find the right blend of industry knowledge, commitment and ambition.
On a personal note, I worked in a customer service capacity in an industry not related to insurance until I took a break to raise a family. For 12 years, I provided in-home day care for families (the ultimate customer service), then decided to re-enter the corporate world when my own children were in high school.
With no insurance experience, I started as a part-time assistant to producers at a direct writer. After five years of phone contact with clients and exposure to insurance terminology and processes, I went to work in a full-time capacity for an independent agency. With the experience gained on the job, as well as the educational opportunities afforded in the insurance industry, a part-time job has developed into a very satisfying and rewarding career.
When an agency decides to fill one or more CSR positions, management should consider what personality traits will fit with the agency’s culture and look for individuals who can provide the level of service and customer support required to establish a good working relationship with clients and build customer loyalty.
Traits of top CSRs
The key difference between an average and an above-average CSR lies in the desire and the ability to go the extra mile. The attitude of the above-average CSR is summed up in three little words: “and then some.” Above-average CSRs do the job and then some. They answer a client’s questions and then some. They meet the required educational criteria and then some. They follow agency procedures and then some.
In addition to meeting state licensing requirements, new CSRs can take advantage of numerous classes and continuing education opportunities, as well as in-house training, and can gradually become a productive member of the agency support team. The CSR position is a good introduction to agency operations; and, as a motivated individual gains knowledge of industry products and services, he or she may advance to higher level positions in the agency.
A positive attitude is mandatory. The power of positive thinking can’t be overrated, and a person who is naturally positive will be helpful, courteous and interested in providing quality support to clients. The interview process should incorporate questions or scenarios that allow the applicant to demonstrate his or her approach in some typical workplace situations.
Example: “A client calls, obviously irritated about a cancellation for nonpayment notice that she received from the carrier. The client believes payment was made and the account should be in good standing. How would you respond to the client?”
Good communication skills are a must and will also be demonstrated in the response to the question above. A CSR candidate should feel comfortable talking on the phone and should be able to deal patiently with problems or complaints and to answer a client’s questions in a professional and friendly manner. CSRs may have to deal with difficult or irate customers, and their efforts to resolve problems can be very rewarding. What at first might seem to be a disagreeable or irritable client can, with patience, empathy and skillful communication, become a satisfied, loyal customer.
The ability to listen carefully is an essential quality. The key to understanding what a client needs or what problem that needs a solution is listening carefully and patiently to the explanation of the issue and getting all the facts. A timely, knowledgeable response requires a thorough understanding of the issue at hand. When the question or issue is completely understood, the CSR can then provide the answer to the client, can direct the client to a source of information or, if research is needed to determine coverage or payment information, can assure the caller that an answer or solution will be provided promptly.
An effective CSR is proficient in establishing customer contact, exploring customer needs, defining and resolving problems, and ending customer encounters on a positive note. An individual with these qualities, along with a “can-do” attitude will be a valuable employee who enhances the agency’s success and profitability.*
The author
Peggy Lund, CIC, began her insurance career in 1992 working part-time at a direct writer. In 1997 she joined the independent agency system and has been employed as an account manager since 2001 by R. J. Ahmann Company in Eden Prairie, Minnesota. Peggy was named the 2007 National Outstanding CSR of the Year by the National Alliance for Insurance Education & Research. For more information on the CIC or CISR programs, or The National Alliance, go to www.TheNationalAlliance.com.