The bottom line for insurance carriers is that independent agents have options. For example, an agency may work with carriers outside of the American Modern Insurance Group, and that means we're stacked up against the competition. Consumers and businesses also have options when it comes to the insurance purchase. Wholesalers, independent insurance agencies, captive agencies and digital InsurTechs are all competing for a piece of the pie. Price is one way to gain a competitive edge, but if the ease of doing business isn't part of the transaction then the price may not matter much.

Related: Why insurers need to stop worrying and love Amazon

A human touch is still needed

The ability to access account information with intuitive and sophisticated tools is another price-of-entry benefit that customers have come to expect. But digital platforms have not eliminated the customer's need to speak to an expert when necessary. Whether it's evaluating complicated risk scenarios or filing a potentially life-disrupting claim, complex issues often need the expertise and guidance that only a real human interaction can provide. In that way, technology is fast becoming a positive enabler for agents because it frees up time for more valuable interactions with clients. And with the wide adoption of social media, chat, text, and video conferencing tools, those interactions can happen where and when it's most convenient for the customer.

Advanced data is allowing carriers to underwrite policies that are more accurately tailored to customers' needs than ever before. But even with a foundation of predictive analytics and customized coverage, a policy is still nothing more than a promise to pay until a claim is actually paid.  At the end of the day, the claims process will be the moment of truth in that relationship.

Customers today expect a frictionless claims transaction that will be resolved with the same execution, efficiency and speed as an Amazon purchase. Carriers are embracing technology to speed up the claim process and better utilize adjusters on more complex claims. For example, chatbots can be used to update customers during select periods of the claims process while those with questions can also send a text message to their adjuster for a speedy response. But while there's no question that technology removes claims processing obstacles and shortens response time, unlike an Amazon order for a new basketball, the claims experience also needs to come with a high degree of humanity. Striking a balance between technology and human empathy is essential in providing the caring customer service that often distressed policyholders require when recovering from potentially devastating events.

If Amazon has taught us one thing, it's that simply meeting customers' expectations isn't enough. Embracing technology as a positive enabler in order to exceed customers' expectations is the new norm. Agencies and carriers need to stay ahead of the technology curve, stay relevant to their evolving customer base and continually optimize their operational efficiency. If they don't, they may risk falling behind quickly.