Four things that will disrupt specialty insurance for the better in 2020
Specialty insurance agents and brokers can use various industry disruptions to their advantage to grow business this year.
Agents and brokers working in the specialty insurance sector can use industry disruptions to their advantage to grow their business in the new year.
Here are the four key disruptors agents and brokers should embrace in 2020.
Automation
Aspects of the insurance industry that are historically manual are becoming streamlined through technological advancements. Adopting these advancements as well as better data processing capabilities will allow agents and brokers to be more productive and increase their revenue and market-competitiveness. Data is constantly being collected, which paves the way for improved underwriting, new products and services, and better risk assessments. In particular, client relationships can benefit from automation, as services become more cost-effective and faster to deliver, and insurance professionals have more time to focus on other, more complex client needs.
Some examples of increasingly prominent technological ventures being adopted in the insurance world are artificial intelligence (AI) and virtual reality (VR). VR can be used by private flood solution providers like Aon Edge to give clients real-life examples of the devastating effects flooding can have on a home through simulating what a flooded home looks like, stressing the need for investing in flood insurance services.
Non-traditional market entrants
The past few years have seen an increasing amount of non-traditional companies enter the insurance marketplace — a trend that is likely here to stay — and industry veterans are shifting their strategies.
Take Amazon and Walmart, for example. Amazon is reportedly preparing to enter the Indian insurance market, operating as a corporate agent for health, life, and general insurance. With more experience, it’s likely they will expand their offerings to more areas of the world. Amazon’s insurance competitors will need to adapt to these changes, and tech-savvy brokers can prepare for new opportunities to get involved.
Strategic partnerships
The rapid pace of change within the insurance industry is constant, and agents need to be able to adapt. One way brokers can keep up with changes in the industry is by forging strategic partnerships to help address client needs and identify potential gaps in coverage. An example of a successful partnership in action is a specialty solution provider that specializes in fine art, like Huntington T. Block, partnering with a solution provider that specializes in sports, leisure, and entertainment, like K&K Insurance. Sports memorabilia collections are unique and often expensive — these two specialty areas of insurance can work together to protect the one-of-a-kind items.
Personalized products
Today, consumers expect a personalized, high-touch experience in near all purchase decisions, including insurance. Thankfully there are more ways than ever for agents and brokers to customize their clients’ experience and options, which ultimately leads to higher rates of satisfaction and retention and a more accurate risk assessment.
For example, Aon Affinity’s Travel Practice offers customized professional liability insurance for travel agents, tour operators, and travel consultants, depending on their individual needs. Personalized insurance plans offer clients peace of mind and insurers a better understanding of the potential risks they could face.
Jennifer Torneden is a senior vice president and director of broker distribution for Aon Affinity, a global insurance broker. She’s an insurance and consulting executive with expertise in change management, creating new capabilities and turnaround in marketing, sales distribution and finance. The opinions expressed here are the author’s own.
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