Study Shows Consumers Who Go Direct For Insurance Needs Return To Independent Agents For Value

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Aug 06, 2013, 10:00 ET

WORCESTER, Mass., Aug. 6, 2013 /PRNewswire/ -- Most customers who are lured away from independent agents by direct insurers promising lower prices will ultimately return to an independent agent, according to a recent study commissioned by The Hanover Insurance Group (NYSE: THG). The study found that nearly 60 percent of consumers who had purchased insurance through a direct channel 10 or more years ago reported switching back to an independent agent because they wanted more value.

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Most consumers who switched back to independent agents cited expertise and convenience as drivers in their decision. According to the survey, the motivators for consumers who switched to work with independent agents also included the benefits of having one point of contact to handle insurance needs and questions, and, having the guidance of an experienced personal insurance professional.

"This research demonstrates that consumers really value the advice provided by independent agents and the personal relationships they build with their customers," said Mark R. Desrochers, president, personal lines insurance at The Hanover. "The majority of respondents said their number one reason for switching from a direct insurance provider was to have someone to guide them through their insurance buying decisions. Clearly trust and expertise are important to consumers."

"The study shows that consumers realize the value that independent agents bring. That's why we deliver our products exclusively through agents who are 'the value creating channel,'" said Dick Lavey, president of field operations and chief marketing officer at The Hanover. "We remain committed to independent agents, as we have for more than 160 years, because we believe the professional service and local expertise they deliver to customers is invaluable and sets them apart in the marketplace."

This study was conducted by InsightExpress, an independent marketing research firm, of 1,000 consumers who purchased insurance through direct channels 10 or more years ago.

To find a local independent agent, please visit the "Find an Agent" tab on www.hanover.com.

About The Hanover

The Hanover Insurance Group, Inc., based in Worcester, Mass., is one of the top 25 property and casualty insurers in the United States. For more than 160 years, The Hanover has provided a wide range of property and casualty products and services to businesses, individuals, and families. The Hanover distributes its products through a select group of agents and brokers. Through its international member company, Chaucer, The Hanover also underwrites business at Lloyd's of London in several major insurance and reinsurance classes including political risk, marine, aviation and energy. For more information, please visit hanover.com.

CONTACT:
Emily Trevallion
Media Relations
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(508) 855-3263

SOURCE The Hanover Insurance Group, Inc.