Two InsurTech trends that help agents serve as risk advisors
What once may have been considered a nice-to-have tool is rapidly becoming essential for insurance agency survival.
Insurance agents have long known that the key to long-term, sustained success is to serve as a trusted risk advisor to clients. Providing risk advising is how agents build stronger client relationships, which in turn increases loyalty, retention and referrals. And we all know the data: It’s more efficient and cost-effective to retain clients than to gain new business.
However, knowing that doesn’t always mean taking the appropriate action to become a trusted advisor. Too often, an agent’s time is spent buried in day-to-day transactional tasks. So, how does an agency get out of the daily grind of tasks and instead focus on advising clients? Two of the latest trends in InsurTech are proving to be a good starting place.
Streamline client communications
In a recent survey of more than 1,000 employees at independent agencies, agents reported that they spend the majority of their day communicating with clients. However, much of that communication takes place via email, suggesting that what agents are really doing is shuffling documents, answering transactional questions, and providing renewal information.
Implementing technology like a self-service portal can take these transactional tasks off the agent’s plate, and automated client communications can help agents reach clients with the right information at the right time. This can include policy information such as renewal notices, and it can also include other types of communication like wishing the client a happy birthday, seasonal property protection advice, and emergency communications in advance of a natural disaster like a hurricane.
Providing a self-service portal and automating communications does not mean the agent will give up talking to clients. What it means is that the quality of those client conversations will improve. Conversations, whether by phone, email, text, or in-person can be focused on education, risk advisement, and complex problem-solving instead of routine tasks.
When the communication is not only personal but also useful, clients can see the benefit of having an agent on their side.
Using data and insights to provide advanced risk advice
Agencies are sitting on a treasure trove of information, and technology that unearths that treasured information without the need for human action is also a great way to get started on the path to becoming a trusted advisor.
For example, tools that use predictive analytics can collect millions of data points and reveal trends and predictions that the human brain simply cannot process. And the information gained from these tools can help agents see which clients are most likely to leave for a competitor, which clients may be underinsured, where there is potential for cross-selling, and more.
The information revealed through a predictive analytics tool enables agents to take targeted action on an account that can help mitigate client risk and keep the client on the book for a long time to come. And when those predictive analytics tools are connected to automated communication tools, the benefit is even greater because the agent has the information necessary to prioritize their day and high-risk clients are receiving the communication they need when they need it.
A path forward
Agencies that already have these tools in place are at an advantage over agencies that do not. Not only do these agencies have the time to do the things that make the most difference, but they also know exactly what each client needs most in real-time.
For agencies that are looking to get started, the time is now. There is a world of InsurTech out there, and embracing automated communications and data-informed decisions is a strong place to stand. Modernizing the agency is not an overnight process, but like all journeys, it begins with a first step. The reality is, the future is already here, and what once may have been considered a nice-to-have tool is rapidly becoming essential for agency survival.
Rick Fox (rfox@vertafore.com) is vice president at Vertafore. These opinions are his own.
Fox serves as the resident expert on independent agencies and what it takes to be successful in today’s complex and connected insurance ecosystem. Rick also hosts the Vertafore Insurance Podcast with weekly episodes that cover the latest industry trends and winning agency strategies.
Prior to joining Vertafore, Fox served as president at Agency Revolution, where he had previously served as senior vice president of sales and marketing and chief revenue officer. He was also a successful independent agency owner, having built his brokerage from scratch and through acquisitions before exiting the business in 2009.
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