Clients want faster service. Carriers want to reduce their risk exposure. Independent insurance agencies are in a difficult position when quoting policies.
Insurance raters help agents satisfy both groups by speeding up the quoting process. Raters allow agents to input data once and receive multiple quotes back, giving clients a range of carrier options in roughly five minutes. They also help standardize workflows across an agency’s producers, reduce data errors, and deliver a better client experience.
Common independent insurance agency challenges
Independent agencies are always in the position of providing clients with faster, more personalized service while also facing shrinking profit margins that make efficiency a necessary part of the job.
The quoting process can be expensive and time-intensive when quoting multiple lines or carriers. Agencies that manually enter data and collect quotes for clients often struggle with the economics of that setup. Tight margins make it difficult to justify the time needed to enter the same data five times to get five different quotes.
That process is also a headache for producers. According to Vertafore research, reducing repetitive data entry and streamlining workflows were the two most important factors for improving the agent experience.
And once client data is collected and submitted, the quotes themselves are often unpredictable—particularly for commercial lines. Carrier appetite is increasingly dynamic, changing frequently and varying by product, industry, and geography. Commercial rates have been increasing across the board just below 6% since 2022. Even experienced agents find it nearly impossible to predict how carriers will treat two different businesses, even in the same market.
What is a rater, and how does it help agency workflows?
An insurance rater is a technology solution that allows agents to input client data once and receive multiple quotes back in less than five minutes. While many agencies already use personal lines raters, just 24% of independent agencies use a commercial lines rater. The gap in adoption is an opportunity for agencies to improve their workflows and gain a competitive edge.
Commercial raters take client information and generate multiple quotes without gathering any extra information or further data entry. If you have the data to quote a single market, you can quote multiple at one time with a rater. That means less repetitive data entry and significantly less time required to provide comprehensive coverage options to clients.
Insurance raters make quoting faster
Insurance raters significantly speed up workflows by reducing data collection and streamlining the quoting process.
Vertafore’s Commercial Submissions makes quoting happen faster by using one data intake process to return quotes from more than 25 carriers. While some quotes need to be further customized to a client’s needs, the rater provides a strong starting point to know which carriers will offer competitive terms.
Commercial raters’ faster quoting process gives producers better insight into constantly changing market appetites. “You never know who’s going to come in with the right prices unless you quote everyone every time,” said Shyla Lankford, COO of Lipscomb Insurance. “That’s a lot of data to enter.”
Easier remarketing
Raters make renewals and lost business remarketing easier and more efficient thanks to their ability to collect and store data.
Raters that integrate with an agency’s AMS keep prospects and their data at the ready. Commercial clients, who are often pressed for time and managing multiple business priorities, appreciate the faster turnaround times. Obtaining insurance quotes and quickly renewing represent one item they can check off their busy schedules.
Tips and strategies
Any rater will help make quoting faster. A few tips will make workflows even more efficient.
Start with smarter intake: Be thorough in gathering all the information you might need up front. Remember, agents can be helpful by playing an advisory role. You will know what information carriers need—the client doesn’t.
Standardize the submission workflow: By formalizing the process, you can speed up onboarding new staff or help another producer to fill in when a staff member is out.
Match carrier appetite early. Raters that use quote binding can lock in quotes and avoid carriers changing the offer on the table. Communicating with underwriters early helps move a policy through quickly once a client agrees.
Conduct exit interviews with lost opportunities: Sometimes, an agent puts five quotes in front of a client, and the client wants the sixth option. Find out why, and save their information to develop a strategy for remarketing.
In the modern insurance market with reduced carrier risk appetites and higher premiums, acting quickly on a good quote is more important than ever. Raters give agents the power to offer fast, accurate quotes with a better workflow for themselves.
Ready to see a commercial rater in action? Watch our webinar for a demonstration, and discover how much time your agency could save. Or learn about Commercial Systems and PL Rating to learn how to implement a rater at your agency.