Agent Feedback

May 31, 2021

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Leadership expert Ken Blanchard coined the phrase, “Feedback is the breakfast of champions.” And, in our opinion, that’s spot-on. After all, with a lack of regular feedback, you’re stifling innovation and productivity. Additionally, feedback also offers the following benefits;

Since feedback provides clear expectations and highlights what needs to be improved upon, it improves performance.
Feedback grants employees the chance to learn, grow, and advance their careers. As a result, this increases retention.
Because feedback helps others improve and succeed, this promotes employee loyalty.
Regular feedback on performance and new skills among employees bolsters performance and gives you a competitive edge.
It’s good for your bottom as feedback reduces the cost of turnover and can increase sales.

But, do those benefits transition over to the insurance industry? Absolutely. And, to back those claims up, there’s data from the J.D. Power 2019 Independent Agent Satisfaction Study.

According to the second annual study, which was developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), found that when independent insurance agents are satisfied with a carrier, the more business they will conduct with that carrier. The data also shows that the key satisfaction is support and communication.

“Each of the highest performing carriers in our study has taken different approaches to the market – some have focused on regional success, while others have emphasized price or service,” said Tom Super, Director, Property & Casualty Insurance Practice at J.D. Power. “What they all share is a common understanding of the linkage between agent satisfaction and improved business outcomes—recognizing what drives agent satisfaction, then being laser-focused on getting that right.”

Unfortunately, the J.D. Power study also reported that independent agents cite low satisfaction with carriers. And, even more concerning, insurers aren’t doing a solid job of meeting agents’ expectations.

What can be done about this? The most glaring starting point is building trust with your agents. And, that’s possible through feedback.

How to Make Feedback Constructive

“The way most organizations handle feedback is terrible,” states executive leadership coach Lolly Daskal. “Bosses save everything up till the dreaded performance review rolls around. Piling up a year’s worth of feedback in one day is grueling and stressful for everyone involved. Instead of being an opportunity for growth, it’s treated as something awful to get through.”

Daskal believes that there’s a problem with both the entire performance review process and how we communicate feedback. “We have institutionalized the art of letting people know how they’re doing, often with a process that does more harm than good,” she adds. “But we dutifully follow the system that’s handed to us, even though it’s unsettling for everyone involved.”

To ensure that feedback is effective, constructive, and geared towards your employees’ growth and development, Daskal has developed the following process;

Make sure that there is a purpose.
Deliver feedback at the right time and duration.
Make feedback a regular occurrence.
Keep it simple and specific.
Make it interactive.
Use “I” statements.
Know when to go private.
Stay focused.
For every negative, provide two positives.
Follow up with progress.

The Cardinal Rules of Feedback.

After you’ve made sure that feedback is effective and employed various communication channels, keep the following in mind as you give and receive feedback;

Never take your agents for granted. Carriers are always hungry for talent and good captive agents are hard to find. Treat your best agents well and cultivate your moderately performing agents.
You don’t have all the answers. In the words of Jack Welch, “Keep learning; don’t be arrogant by assuming that you know it all, that you have a monopoly on the truth; always assume that you can learn something from someone else.”
Make it easier to do business with you. This is especially true in regards to underwriting. Make sure that the underwriting process is fast and streamlined.
Foster a culture of trust and respect. Respond to comments in a timely and respectful manner. And, take action on their feedback to show that you not only listened to what they said, that you’re not paying them lip service.
Recognize your agents. Always thank your agents whenever they bring-up an issue, as well as their contributions. You can also give them a shoutout on newsletters and social channels.

Using Feedback to Make a Difference

What’s the purpose of agent feedback? Ideally, it’s to improve your processes and products. Additionally, it can nurture a positive culture while also maintaining a competitive edge. But, here’s a closer look at how you can use feedback to make a positive difference.

Insurance applications. Using the input from agents can improve the application process. Not only does this save your agents time, but it also improves the customer experience. And, according to McKinsey, “Companies that offer consistently best-in-class customer experiences tend to grow faster and more profitably.”
Make Certificates of Insurance easy. Most policyholders must track the insurance requirements of their vendors and suppliers. Use software like TrustLayer to make it easier for your policyholders.
Process improvements. Speeding up the time to complete a process not only frees up an agent’s valuable time, but it’s also another way to keep customers happy.

Not surprisingly, as J.D. Power states, “Satisfied agents are more likely to recommend an insurer to their clients.” To make sure that this word-of-mouth takes place, welcome feedback from your agent. But, you also need to go beyond paying them lip service. Display your sincerity by showing your agents that you value them by taking action on the feedback they’ve shared with you.