While the majority of today’s insurance carriers say they like getting quotes through portals or direct emails, agents believe digital methods are the way to go for efficiency and speed. (Credit: elenabsl/Adobe Stock)
Insurance has seen a huge digital shift recently, redefining many ways of doing business.
This should be great news, right? Only it seems like we're stuck in a bit of a time warp, with plenty of agents and carriers saying they want to move more briskly toward digital but still clinging on to old-school ways. But let's be real: These traditional methods aren't proving anywhere as effective as digital alternatives.
The recent report, 2024 Agency-Carrier Connectivity Trends, based on the annual Ivans Connectivity Survey, provides an interesting look into areas like appetite communications, commercial line quoting, and insured data capture that show this contradiction between wanting digital connectivity and actually using it. So, let’s dive into these areas and discuss how both agents and carriers can create greater efficiency and profitability in their businesses by leaving the traditional ways behind and committing to digital connectivity together.
Appetite communications: We're missing out on opportunities
According to the survey, 76% of agents admitted they missed out on some business opportunities because they couldn't find a market to quote the risk. What this really means is the old way of doing things is holding agents — and carriers — back. That's not good. But we’ll get to carriers in a minute.
The survey clearly shows agents’ need for digital appetite search. Imagine just typing in the risk description and getting a list of markets that have appetite for the risk. No more calling or visiting multiple carrier portals to find markets. And you never have to worry about out-of-date appetite as digital appetite makes sure everything is always current.
Back to carriers: About 78% of them say they're still clinging tightly to traditional promotional methods such as in-person visits and events. This isn't the most efficient way to get the job done though. Not only does this undermine potential market reach, but it also creates a gap in communications between agents and carriers.
Carriers, too, should make a shift to digital appetite communication so they can expand their market reach and visibility. Tools like digital appetite guides can largely replace in-person visits and events, bridging the connectivity gap between agents and carriers. These tools can put your appetite in front of agents exactly when they’re looking, helping you win more new and renewal business.
Commercial lines quoting: Let’s find a middle ground
When it comes to commercial lines quoting and submissions, there seems to be a tug of war going on. Sixty-six percent of carriers say they like getting quotes through portals or direct emails. Agents, however, believe that digital methods are the way to go for efficiency and speed. In fact, digital commercial quoting and submissions was ranked as the second most important type of digital connectivity by agents.
Finding a middle ground for quoting and submissions is critical. Considering the different preferences in receiving and sending quotes, blending traditional and digital methods would work best for all stakeholders.
Enter integrated distribution platforms — these solutions can prioritize speed and efficiency for agents and accommodate the convenience preferred by carriers, ultimately bringing these stakeholders together for more profitable and efficient interactions.
Insured data capture: The battle with time and efficiency
Another hiccup in the mix is how we gather data from insureds. A staggering 68% of agencies are still using phone calls or emails for this. The downside is that it takes up a ton of time with re-entering info into different forms and applications.
This process isn’t only taking time, it’s creating inaccuracies that create risk of E&O and more time spent fixing problems. Application and submissions management solutions can replace calls and emails, ensuring quick and accurate collection, storage, and sharing of information, lowering the chances of errors, and speeding up data collection.
Automating data exchange with agency partners also creates more efficiency for carriers, reducing time chasing after missing information and answering questions. This tech gives everyone access to the most recent information, and reduces misunderstandings, and improves agent-carrier relationships and customer experiences with faster turnaround times.
It's high time for more digital adoption
The bottom line is, the agent-carrier relationship is ripe and ready for change, and improved digital connectivity can help make that happen.
So, why the holdup? It’s time for agents and carriers to stop being shy about going digital and get serious about it. The perks are clear — better reach, accuracy, time-saving, efficiency, and let's not forget more profitable relationships between agents and carriers. Let’s close that gap, and embrace digitalization for a smoother, faster, and better way of working.
Reid Holzworth is CEO of Ivans. These opinions are the author's own.
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