Insurance agents and brokers are experiencing a major shift inwhat their customers and clients have come to expect.

By 2017, "digital natives" will dominate the workplace, which has hugeimplications for agents and brokers looking to engage withcustomers and grow their businesses. As the millennial generationmatures and enters into its peak buying power, digital andmore-automated ways of doing business will become a fundamentalpart of day-to-day workflows.

From the rise of mobile users and cloud-based technology tosocial media interaction, a Deloitte study on 2016 tech trends forinsurance agents explains that insurance agents are finallyrealizing the need to be more nimble, efficient and accessible inorder to serve today's customer.

To add to this, there is a challenging regulatory environmentthat continues to grow among the insurance sector. A recentDeloitte report outlines that such regulationsare no longer one between state and federal entities, but a hybridof U.S. and state government regulation of insurance entities toensure efficiency and adherence to state and federal standardprocedures.

As a result, insurance agents not only feel pressured todigitize their workflow, but also must streamline businessprocesses to make the cost of doing business more efficient andin-line with these regulations.

These complexities are challenging the fundamental ways agentsand brokers have done business in the past. According to a HarvardReview report, insurance agents who embraced thedigital practice reported a 65% cost reduction and a 90% reductionin turnaround time on key insurance processes.

Insurance organizations that are flexible, agile and can offeradvanced technology to create the kind of business processes thattoday's clients demand are the ones that pose a threat to thetraditional, perhaps even larger insurance organizations.

The first step to staying ahead of these challenges in 2016starts with deploying the right kind of technology among documentmanagement workflows and other daily business processes. In theend, the easier it is to onboard a customer and make agents moreavailable to prospects and clients, the more insurance entities cangrow their clientele, reduce operational inefficiencies and growrevenue.

While 63% of insurance businesses report that they are ready tomove towards more digital practices, only 23% of these business areactually ready, reports a joint Forrester and Accenture study. To acceleratethis process and ensure successful transition to digital workflows,there are three key areas we can expect insurers to embrace as theyseek to create more automated, user-friendly processes.

1. Embracing a cloud-based and on-premise infrastructure

Just two years ago, 84% of companies were operating in the cloudand more than half of these companies reported that the cloudreduced the amount of work from IT teams, says PC World. Still, IT teams in the insurancesector struggled with what information is allowed by regulators tobe stored via cloud vs. on-premise. To add to this, theproliferation of legacy technology is challenging thecloud-based-only approach. Many insurance entities are running offof 40-year old administration technology designed to manage theclaims process, says a recent TrustMarque report. This kind of technology is hinderinginnovation, but insurance agents are far from instantaneouslyreplacing such mainframe technology.

This year, as the insurance sector adopts a more streamlinedworkflow, we can expect a significant increase in the use oftechnology that can be operated via hybrid cloud and on-premise,ensuring ultimate flexibility for customers and clients and strongadherence to the ever-changing government regulations within theinsurance environment.  

The time is now for insurance entities to adopt more digitalpractices in order to stay competitive against nimble, moreinnovative companies. (Photo: Shutterstock)

2. Automating business processes where necessary   

The key to moving toward a more digital environment andimproving customer service is to automate workflows wherenecessary. With the excessive use of social media on the rise, andon multiple channels, customers expect ultimate interaction andpersonalization from their insurance agents and brokers. In fact,Forrester says online and cross-channelcustomer experiences will get the most attention in 2016.

While standard face-to-face interaction may be less commonbetween insurance entities and their clients, relationships arestill just as important, if not more important than in the past. Assuch, insurance agents need more time to interact with theircustomers and less time sorting papers, scrolling through documentsand staying on top of processing claims. This is why automatingworkflows will be critical to moving the digital transformationforward in 2016.

3. Choosing programs and systems with customers in mind

A Forrester-Accenture report recently dubbed thisyear the "age of the customer," where the customer experience is atthe heart of the digital movement. This means that technologies andnew digital processes can't be implemented with anadministration-first mind set.

Take for example, something as simple as a digital application.While some technology may truly require three different phonenumbers or two different emails from the client, how convenient isthat for the customer filling out the application? Today'scustomers expect a seamless, intelligent process from insurancebusinesses. While this may signal some disruption to internalprocesses for the agent, the end result must be to make programseasier to use for the customer, not merely just the IT team.Keeping customers top of mind in 2016 will be key to a successfuldigital transition. 

Without question, the dynamic technology landscape and thegrowing regulatory environment are changing the fundamental ways inwhich insurance companies of all sizes do business and engage withcustomers. The time is now for insurance entities to adopt moredigital practices in order to stay competitive against nimble, moreinnovative companies. Yet, while many insurance businessesrecognize the importance of digital transformation, very fewcompanies are actually ready for the switch. Taking into account ITinfrastructure that supports the digital needs of clients andcustomers, yet upholds government regulations, all whileefficiently automating daily workflows will put insurance agents onthe right path towards digital transformation.

David Brinkman is president and CEO ofAtlanta-based electronic signature softwarecompany AssureSign. Follow him @DavidWBrinkman or @AssureSign.

Related: The insurance iceberg: Transformation going onunder the surface

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