Customer Service Focus
CSR workloads & rewards
Comparing commercial lines and personal lines CSRs
By Jim Cuprisin, CIC, CRM, ARP
Insurance customer service representatives (CSRs) who work in the property/casualty arena all provide valuable service for their clients. This is one trait they all have in common. But in what ways do they differ? Survey results from The CSR Profile (published by The National Alliance Research Academy) show how commercial lines CSRs are different from personal lines CSRs.
What’s in a name?
Customer service professionals go by several different names in insurance agencies, as shown below:
Job Titles |
% CL Respondents |
% PL Respondents |
| Account manager | 35% |
17% |
| Customer service representative | 31% |
39% |
| Customer service agent | 10% |
26% |
| Other | 24% |
18% |
“Account manager” is used most often for the commercial lines service personnel. Commercial lines accounts can often be large and complex, so an account manager title may be appropriate for someone who manages these large accounts and spends a considerable amount of time on each one. “Customer service representative” and “customer service agent” are used more often for the personal lines service positions, using these more traditional names for the customer service oriented job positions within the agency.
Some agencies use account manager and customer service representative/agent for the same line of business, with the account manager being a higher ranked position for the more experienced person. (Throughout the rest of this article, customer service representative or CSR is used to represent any and all of the service positions within the agency.)
Sold on sales
Nowadays, many CSRs are actively involved in sales, adding this responsibility to their primary service activities. Survey results show the percentage of CSRs who are active in sales and the types of sales responsibilities they handle.
CSRs with sales responsibilities |
|
| Commercial lines CSRs | 55% |
| Personal lines CSRs | 78% |
Types of sales responsibilities |
% CL CSRs |
% PL CSRs |
| Renewals | 77% |
77% |
| Account development | 76% |
85% |
| Cross-selling | 62% |
89% |
| New business | 56% |
85% |
Personal lines CSRs are more active in sales than their commercial lines counterparts. Personal lines accounts are typically smaller and less complex than commercial lines accounts, making it easier for CSRs to join in the sales process. Additionally, personal lines CSRs are more active with cross-selling life and health insurance products to their personal lines customers, thereby increasing their sales activity.
Getting a handle on claims
Related to their servicing of accounts, many CSRs handle their customers’ claims. CSRs typically take the loss information over the phone and follow up with the claimant if any additional information is required. After forwarding the appropriate information to the insurance company, CSRs follow up with their clients to make sure their claims are being handled in a fast and fair manner. CSRs may often follow up with the insurance company claims personnel if a claim is slow to be processed.
CSRs who handle claims |
|
| Commercial lines CSRs | 39% |
| Personal lines CSRs | 60% |
Personal lines accounts are typically not as large or complex as the commercial accounts, so personal lines CSRs find it easier to add claims handling to their work load. With larger, more sophisticated commercial accounts, it may take additional years of experience for CSRs to assist in a significant way in the claims process.
Service with a smile
There is a big difference in annual servicing volume between commercial lines CSRs and personal lines CSRs, as indicated below:
Annual servicing volume |
CL CSRs |
PL CSRs |
| Average (Commission) | $364,800 |
$131,400 |
| Median (Commission) | $296,600 |
$103,700 |
Annual number of accounts |
CL CSRs |
PL CSRs |
| Average | 197 |
733 |
| Median | 111 |
600 |
Servicing volume is much higher for the commercial lines CSRs than the personal lines CSRs. Commercial lines accounts are typically much larger and these sizable accounts make it possible to service a larger book of business since there are significant processing efficiencies attributable to handling large accounts.
When it comes to number of accounts, the results are opposite. Since personal lines accounts are typically smaller than commercial accounts, personal lines CSRs can handle a higher number of accounts on an annual basis. Personal lines accounts generally do not vary that much in size, and most CSRs can process similar numbers of accounts. However, for the commercial lines CSRs, the number of accounts handled can vary greatly based on the average account size, which can vary from agency to agency, or from one CSR to another. Regardless, even the smaller commercial accounts are larger than most personal lines accounts, influencing the servicing number of accounts.
Show me the money!
Annual Compensation |
CL CSRs |
PL CSRs |
| Average | $43,200 |
$34,300 |
| Median | $42,000 |
$34,000 |
On average, commercial lines CSRs earn about 26% more than their personal lines counterparts. The difference is attributable to the complexity of commercial lines business. Much knowledge and skill is needed to work with the large, intricate, commercial lines accounts. There are also many niche markets in commercial lines, and it takes experienced CSRs to master these different areas. CSRs who have expertise in a unique but popular niche can demand higher salaries. Personal lines is by no means simple; there are also complexities with this line of business, as well. However, the commercial lines CSRs typically receive more compensation.
It’s really good, but not perfect
Most CSRs have long and successful careers and enjoy the type of work they do. They are people-oriented individuals who like to help others. They help their clients with getting the right coverage and handling their claims. However, like any job, there are a few things that can be frustrating at times, as the survey results indicate:
Most frustrating aspects |
% CL CSRs |
% PL CSRs |
| Keeping up with policy and form changes | 34% |
32% |
| Dealing with difficult clients | 33% |
52% |
| Time management | 33% |
22% |
Personal lines CSRs have more problems with difficult clients than do commercial CSRs. Problems may occur with claims, agency or company procedures, payment of premium, coverage questions, or other areas. Also, many personal lines clients may not have much knowledge or understanding of insurance, which can add to the difficulty in communication and understanding. The commercial buyers of insurance will typically have more knowledge of insurance and this can prevent misunderstandings from occurring.
Commercial lines CSRs more often have trouble with time management compared to the personal lines CSRs. Larger commercial accounts may have a number of regular service issues, such as with certificates of insurance and a number of policy changes on a regular basis. Even preparing renewals can take considerable time. This extra service level can be one significant reason for time management difficulties.
Summing it all up
There are differences between the responsibilities and compensation of commercial lines and personal lines CSRs, much of which is attributable to the larger size and greater complexities of commercial accounts. However, the major roles of CSRs are very similar; they must provide quality service on a regular basis to retain profitable accounts for their agencies. *
The author
Jim Cuprisin, CIC, CRM, ARP, is the research director for The National Alliance Research Academy and editor of Resources magazine. He also has past experience as an underwriter with two insurance companies. For more information on The National Alliance or CISR program, call (800) 633-2165 or go to www.TheNationalAlliance.com.