The keys to a profitable, productive insurance ecosystem
Insurance is a business known for dependability. But the industry also is ripe for modernization in order to meet the challenges of 'a new normal' characterized by constant business disruption. Today we're seeing pushback on the old rules of engagement between insurers, agents and customers, with insurance leaders adopting a range of customizable digital technologies that have paid dividends in other verticals for years, and the industry's innovators are seeing measurable returns in improved efficiency and customer experience. So what technologies should insurance professionals be thinking about, and how can they best benefit the digital ecosystem? Here, we will look at some of the trends that are driving the adoption of new ways of business to outrun the ever-shifting landscape.
Facing down challenges
The pandemic shifted the prominence of digital strategies across industries. According to McKinsey, it accelerated business adoption of digital technologies by several years. McKinsey research also shows that 90% of insurance agencies consider legacy software and infrastructure to be barriers to digitization. Using outdated platforms and software along with manual processes continue to cause such problems as:
- Wasted time. Many agencies still rely on employees to complete repetitive, time-consuming tasks. On the carrier side alone, data suggests that the proper technology can automate up to 60% of back-end operations.
- Poor customer experiences. A report from the IBM Institute for Business Value found that 42% of customers don't trust the insurance industry, and a majority of them want insurers to understand them better. Yet 60% of insurance executives say they lack a customer experience strategy. So clearly there is an opportunity for providers to fix this costly gap.
- Customer turnover. A survey from PWC shows that nearly half of consumers would consider switching to insurers that provide digitized experiences.
All signs point to the need for continual innovation and modernization of core processes to improve insurance customer satisfaction and retention. Today's agencies have no choice but to get ahead of changing technology trends or lose customers to savvier competitors.
Agency technology evolves
Fortunately, technology can address many of the industry's challenges. The slideshow above illustrates nine technology trends that independent insurance agencies should consider.
Future-proofing with training
As technology and consumer demands evolve, proactive agencies can reap the full benefits of innovation. More than two out of three respondents to the 2022 National Underwriter/PIA Independent Insurance Agent Survey highlighted the need for continuing education and ongoing professional development, emphasizing that training is indispensable for agency success. Continuing education also applies to technology adoption, which allows agents to properly capitalize on the tools at their disposal. While exact training needs vary based on the specific technology, general needs include:
- Learning to use software and hardware products;
- Understanding client onboarding processes;
- Assisting customers in using online or mobile tools; and
- Addressing skills gaps (for instance, providing software training).
A disciplined approach to training can improve the bottom line along with consumer and employee satisfaction. For instance, "micro-training" involves teaching new skills in more relaxed environments, which increases engagement. Adaptive training tailors teaching approaches to each person's learning style, ensuring everyone understands the tools of their trade.
How to get started
It's up to each insurance agency to carefully evaluate the technologies to improve their processes and satisfy their customers; and then train employees accordingly. Given the speed of change, a digital divide will appear between agencies that implement these technologies and those that don't. Embrace tech now. Don't wait for the divide to become a chasm. Find expert technology partners with insurance-industry experience who can help implement proven pilot projects that can bring quick returns. Once you see results, tweak and take next steps from there. Adam Kiefer ([email protected]) is co-founder and CEO of Talage, makers of insurance-industry software. See also:
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