How digitization continues to disrupt the insurance industry
Insurance agents of the future capitalize on digital tools to revamp their strategy and grow their business exponentially.
From transportation to manufacturing, digitization is disrupting the way companies do business.
While insurance is slowly starting to evolve, the industry remains ripe for change. The sheer volume of data available to agents today is a departure from the way they’ve traditionally done business, and a powerful new tool to harness fresh insights that can enhance marketing skills and grow their customer base.
The shifting insurance landscape
The market shift toward online or direct sales — coupled with the plethora of data this provides — is creating exciting opportunities for insurers to revamp their strategy and grow their business exponentially. In addition to changing how insurers go to market, this new landscape is shifting the role of the agent themselves. Their adoption of digital tools equips them as trusted advisors, leveraging new insights to understand and serve customers better. It’s truly emphasizing the consultative nature of the business.
Agents are in the driver’s seat, leading the way. By embracing new tools and opportunities that technology has generated, agents are equipped with the power to grow, shape and transform the future of their companies and businesses.
Unpacking today’s customer experience
The insurance ecosystem is experiencing a unique dynamic today. While some people — primarily older generations — will always prefer that one-on-one human contact, the Millennial and Generation Y population is more comfortable online. In general, they prefer to browse, shop and troubleshoot digitally first. Plus, with mobile at hand, agents can expect consumers to be more knowledgeable and resourceful when it comes to purchasing insurance.
With access to multiple points of information, consumers are more empowered and informed in their choices and decision-making, which means agents need to meet these expectations to facilitate transactions online quickly and easily, as well as find the most reasonably-priced products that meet the exact specifications they’re seeking. embrace the digitally savvy, well-informed consumer of today and tap into their mindset.
Not only that, referrals are going digital, too. Twenty, or even 15 years ago, agents were well-known in their neighborhoods and grew their books of business largely because of referrals. Now, however, with social media and technology at the forefront, agents should look online to grow their client base.
Transforming the customer dynamic
Technological advancements are decreasing the pressure for involved paperwork and simplifying processes, enabling agents to be more responsive to customer servicing, claims and product development. By lessening the amount of mundane, servicing tasks, agents can spend more time on providing added value that inevitably leads to growth.
Additionally, emerging technologies and analytical tools allow insurers to personalize insurance products and services for leads and customers. This data empowers agents to educate potential and current customers on what solutions are best-suited for their needs rather than provide them with a laundry list of generic offerings. Through technological advancements, insurers are also providing agents with real-time and on-demand training on the products so they’re more informed on what’s available in the marketplace. Utilizing consumer data and training tools effectively can lead to enhanced customer service, increased customer retention, more sales and overall business growth.
Building a sustainable model for the future
Now more than ever, it’s critical for insurance agents to start thinking about how these changes can equip them as advisors to fit — and in some cases, direct — evolving customer needs. In an age where technology is taking prominence and rapidly advancing, agents need to look at customer data through an analytical lens to understand how their customers (current and potential) want to be serviced and communicated to, what their needs are and add a customer-savvy, valuable human touch. As the market evolves, so too is the profile of a successful agent — emphasizing the need to be a tech-savvy, curious consultant always leveraging technology in different ways.
Brokers and agents are navigating an exciting new chance to embrace shifting customer dynamics and adopt technologies into their business models with the power to grow their businesses substantially.
Shannel Clubb is a principal and leads the national Technology and Management Consulting (TMC) insurance practice at RSM US LLP, a leading provider of audit, tax and consulting services focused on the middle market. She is based in the firm’s Chicago office and can be reached at Shannel.Clubb@rsmus.com.
These opinions are the author’s own.
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