By J. Bruce Cochrane

Consumers are smarter, more sophisticated, and more demanding than ever before. Plus, technology affords them choices at the click of a mouse. The traditional agency Value Triangle of Price, Coverage and Service is increasingly becoming more difficult to sustain. Price gets cheaper and cheaper, and with the “me-too” nature of our industry, insurance companies are leap-frogging each other on an inexorable path to the eventual true “all risk” policy. When Price and Coverage differentiations diminish, what happens to the agent’s traditional Service value proposition?

Through research, we learn that insurance buyers seek expertise, trustworthiness, and efficiency. They demand ease of doing business and responsive service. And in today’s increasingly frenetic world, consumers yearning to simplify their lives are seeking ways to consolidate service providers.

Will you be consolidated or be the consolidator? To avoid the latter and ensure the former, be aggressive about offering clients expanded value-added services beyond pure insurance. The age of single service delivery is dead. Smart agencies will quarterback the delivery of multiple services and become Service Delivery “Hubs.”

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