Thursday, December 9, 2021

The role of a service center

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This post is part of a series sponsored by Hanover Insurance Group.

There was a time when most small businesses were well protected by standard line coverage such as business owners policy, workers compensation and auto. Those days are gone.

The constant evolution of small businesses, especially in the post-epidemic environment, means the need for coverage is also evolving. A new and fast-growing market segment-small specialty as a result of the increased need for special coverage options such as cyber, employment practices, errors and omissions and much more.

Exceeding the standard line

This new segment and the increased service expectations of customers are creating a service challenge for independent agents – and the opportunity for service providers to provide effective and efficient solutions for their agent partners by increasing their servicing capabilities.

Unfortunately, while carriers have long been adept at serving standard lines in BOP-centric small business and service centers, they were largely unable to provide services in the small specialty market. This forces agents to do one of two things – either split the servicing of their small business account, establish a standard line business in a service center and maintain servicing responsibilities for small special policies, or provide full service to their own account.

Generally speaking, it is also not an ideal solution for agents. Above all, agencies work with service centers to increase efficiency, expand their service capabilities, and reduce costs. But do agents get the full benefit if only half of an account is managed at a service center? Often, the answer is no. As we move toward a more account-focused approach to insurance, service centers need to manage more complex policies for small businesses as a whole.

Specialized services

Small businesses with special exposure can be better served when carriers take an innovative and collaborative approach, rethink their models to the best service providers and expand their servicing capabilities to cope with this new market. Customers don’t think of their small business risks in the traditional commercial silo of small commercials and specialties তারা they want end-to-end insurance solutions and services.

Small commercial service centers that serve both standard and specialty lines offer many benefits to agents, helping to provide a universal experience for their customers, while improving their economy and saving employees valuable time.

Also, with a broader perspective on small business customers and their growing needs, service centers are in a better position to identify coverage gaps. In this case, service centers can offer significant value – and a competitive advantage.

The right partner

It is important to note that not all service centers are staffed by licensed insurance professionals, and this is an important consideration as business risks continue to evolve. A service center whose staff has a deep understanding of the risk scenario can round out accounts and recommend significant coverage enhancements – all of which also benefit agents.

This is why working with a service center that can provide this high level of efficiency can make all the difference. Carriers like The Hanover can effectively serve all lines of risk for small businesses, provide exceptional customer service and increase agent growth.

Learn more about Hanover’s special capabilities for business insurance visits

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