Jeffrey Wade
A comparative rater is a must-have application for insurance agencies that simplifies the process of obtaining quotes from multiple insurance carriers. It saves time by eliminating the need to enter customer information repeatedly and provides a seamless experience for customers. The quality of a comparative rater can significantly impact an agency's performance, with a great rater helping to close more deals and a low-quality one hindering the agency's potential. These raters can also be integrated with management systems, enhancing efficiency and enabling agencies to sell more.
| Characteristics | Values |
|---|---|
| Definition | An application that simplifies the time-consuming and complex task of gathering prices from multiple providers of any good or service. |
| Purpose | To save time and make it easier to sell insurance. |
| Benefits | Efficiency, value-adds, automation, self-assessment, sales opportunities, remarketing, better customer service, faster work, etc. |
| Types | Personal lines carriers, commercial lines carriers |
| Function | Provides quotes from multiple carriers in one place with the input of basic customer and risk information. |
| Features | Data pre-fill, reporting capabilities, quote templates, customizable interfaces, integration with management systems, etc. |
| Examples | EZ Lynx, Turbo Rater, PL Rating systems, Bold Penguin Terminal, InsureZone |
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What You'll Learn
Comparative rater systems
A comparative rater, or rating engine, is an application that simplifies the process of obtaining quotes from multiple insurance carriers. It is a must-have for today's insurance agency owner.
Comparative raters save time and make it easier to sell insurance. They allow agents to get quotes fast with one-time data entry, delivering quotes from lots of carriers at once. The best raters offer access to a wide range of carriers and allow for customisation based on the agent's industry knowledge.
There are two main types of comparative rating systems: those that let insurance agents access personal lines carriers and those that let agents access commercial lines carriers. Personal lines carriers offer insurance for individuals, while commercial line carriers provide insurance for businesses.
When choosing a comparative rating system, it is important to consider whether it offers integrations with the software and systems already in use by your agency, and whether it provides access to the carriers you work with. The cost of these systems can vary, but most fall in the range of $100-$300 per month.
Some examples of comparative rating systems include EZ Lynx, Turbo Rater, and PL Rating systems. These systems provide quotes from multiple carriers in one place with the input of basic customer and risk information.
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Benefits of a comparative rater
A comparative rater is a tool that allows insurance agents to enter a client's data once and receive quotes from multiple carriers. This saves time and makes it easier to sell insurance.
Efficiency
Comparative raters save time by eliminating the need to log in to each carrier's website and repeat the data entry process for each quote. This turns a task that could take hours into minutes.
Accuracy
Comparative raters provide accurate and up-to-date quotes by applying built-in underwriting rules and leveraging information from the public domain to pre-fill data entry fields. They also check for accuracy by red-flagging missing or invalid data.
Self-assessment
Comparative raters keep all quoting activity in one place, allowing agencies to easily generate reports and gain insights into their business, such as where their business is coming from and close ratios per carrier. This information can be used to improve profitability.
Value-adds
Comparative raters offer more than just premium comparisons. They sort quotes by down payment, annual premiums, limits, and deductibles, allowing agents to guide clients towards the most favourable terms, not just the best price.
Customer experience
Comparative raters improve the customer experience by providing an all-in-one service that shows clients other lines of insurance they might be interested in. They can also streamline the renewal process by allowing clients to update their risk information securely online.
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Types of comparative raters
A comparative rater in insurance is an application that streamlines the process of obtaining quotes from multiple providers. There are two main types of comparative raters: personal lines carriers and commercial lines carriers. Personal lines carriers offer insurance for individuals, while commercial lines carriers provide insurance for businesses.
Personal Lines Carriers
Personal lines carriers allow insurance agents to obtain quotes for individuals. These raters can provide quotes for a range of personal insurance products, such as auto, home, and health insurance. They can also include other types of personal lines insurance, such as life insurance, disability insurance, or travel insurance. Personal lines raters offer a convenient way for agents to compare rates and coverage options from multiple carriers, ensuring that individuals receive the most suitable and cost-effective policies for their needs.
Commercial Lines Carriers
Commercial lines carriers, on the other hand, cater to the insurance needs of businesses. These raters can provide quotes for various commercial insurance products, including business owner's policy, property insurance, general liability, commercial auto, and cyber liability insurance. Commercial lines raters enable agents to efficiently compare rates and coverage options from different carriers, helping businesses find the most appropriate and cost-effective insurance solutions.
Standalone vs Integrated Comparative Raters
Comparative raters can also be categorised as standalone or integrated solutions. Standalone comparative raters focus solely on comparing insurance rates and quotes. They allow agents to gather information on rates and coverage options from multiple carriers, helping them make informed decisions. However, they do not offer additional features beyond rate comparison.
Integrated comparative raters, on the other hand, provide a more comprehensive suite of tools. While they also facilitate rate comparison, they offer additional functionalities that enhance the user experience. For example, integrated raters may provide access to prospect marketplaces, enable collaboration within the insurance industry, or offer innovative quoting features such as Quote By Text, allowing customers to request quotes via text messaging. Integrated raters often aim to streamline the entire insurance workflow, increasing efficiency and profitability for agents.
Commercial Comparative Raters
Within the category of commercial lines carriers, there are specialised commercial comparative raters. These tools are designed specifically for businesses and can offer unique features to meet their complex insurance needs. Commercial comparative raters can provide accurate estimates for commercial insurance policies, eliminating the need for manual searches and comparisons. They help businesses quickly compare different policies, identify potential discounts, and determine the best plans based on their specific requirements. These raters ensure that businesses stay up to date with the most accurate and favourable rates, contributing to their long-term financial well-being.
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Choosing a comparative rater
A comparative rater is a tool that allows insurance agents to enter customer information once and send it to multiple carriers to get quotes. A good comparative rater saves time and makes it easier to sell insurance.
When choosing a comparative rater, it is important to consider one that offers an all-in-one customer experience. The rater should be able to bring quotes from multiple carriers quickly, saving the agent from having to go to each carrier's website for each quote. The best raters offer access to a wide range of carriers and allow for one-time data entry. The data should be stored so that it can be easily copied and used for renewals, saving time and effort.
Comparative raters with management system integration are also beneficial, as they allow for a more connected user experience without having to switch between platforms. This integration can also make remarketing simpler and provide opportunities for automation.
It is also worth considering a comparative rater with innovative features such as quoting by text, which allows customers to ask for quotes and provide information through text messaging.
Some comparative raters, such as Bold Penguin, offer additional features beyond rate comparison. Bold Penguin's platform integrates with other products, such as the Exchange, which provides access to commercial insurance leads and new carriers. Bold Penguin also offers secure API integration, ensuring that agents receive accurate and current information on comparative insurance rates.
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The future of comparative raters
Comparative raters have already evolved to include a wide variety of workflow and marketing tools, such as report generation, automatic lead follow-up, and client-facing quote generation. However, there is still room for further development and improvement in this technology.
Firstly, the integration of comparative raters with management systems is key to future success. This integration allows for a more connected user experience, increased efficiency, and the ability to work faster, ultimately leading to higher sales. The highest-quality raters will continue to add new products and features to streamline the quoting process, such as the Quote by Text tool by EZLynx, which allows customers to request quotes via text message.
Secondly, comparative raters that integrate seamlessly with other products and services will be more attractive to agents. For example, Bold Penguin's platform integrates with the Exchange, the largest prospect marketplace for small commercial insurance, allowing agents to monetize leads and unlock new revenue streams.
Thirdly, ensuring accuracy and current information is vital. Comparative raters that can provide secure API integration, such as Bold Penguin, will be preferred by agents as they offer accurate and up-to-date information on comparative insurance rates from carriers. This emphasis on connectivity and collaboration will improve productivity and communication throughout the insurance quote and bind workflow.
Finally, comparative raters that offer customizable insurance packages will be more valuable to agents. By allowing agents to modify interfaces based on their industry knowledge, they can guide client choices in the right direction, leading to increased long-term client satisfaction.
In conclusion, the future of comparative raters in the insurance industry lies in integration, innovation, accuracy, and customizability. These advancements will enable agents to work more efficiently, make more informed decisions, and ultimately provide better service to their clients.
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Frequently asked questions
A comparative rater is an application that simplifies the process of gathering prices from multiple insurance providers. It saves insurance agents time by providing quotes from multiple carriers in one place with the input of basic customer and risk information.
The primary benefit of a comparative rater is efficiency. It saves time by providing quotes from multiple carriers at once, eliminating the need to go to each carrier's website individually. It also allows for easy data storage and retrieval, making it convenient to re-shop quotes for renewals or updates.
When choosing a comparative rater, consider the following:
- The list of available carriers and whether it includes the carriers you work with.
- Integration capabilities with the software and systems already in use by your agency to avoid duplicate entries.
- Data pre-fill options to streamline the application process.
- Reporting capabilities to track the number of quotes generated, close ratios, and other valuable metrics.
A comparative rater can help insurance agents close more deals by providing quick access to quotes from multiple carriers. It allows agents to guide client choices by sorting quotes by down payment, annual premiums, limits, and deductibles. It also simplifies the renewal process by allowing clients to update risk information securely online.
Some well-known comparative rating systems in the insurance industry include EZ Lynx, Turbo Rater, and PL Rating systems. These systems offer quotes from multiple carriers, but each has a different 'feel' when rating customer risk, so it's important to choose one that aligns with your agency's needs.
