The insurance industry is known to be slow to change. However, the COVID-19 pandemic forced all aspects of the industry to adopt digital practices. Now, a digital transformation is well underway in the insurance industry.
Insurance technology, or insurtech, is no longer an optional part of an insurance practice; insurtech has become the standard for delivering service that aligns with increasing customer standards. Insurance agents and financial advisors need to utilize the benefits of insurance technology to improve their practice.
Here are just some ways insurance technology will improve the way you run your business.
The Benefit of Insurance Technology #1: Everything is Digital
One benefit of insurance technology is that everything is digital. Remember the days of looking through rate books and paper underwriting guidelines and paper applications? Imagine still running your business that way. The traditional ways of doing business in the insurance industry are no longer enough to stay above the competition.
A LIMRA article states that “nearly two-thirds of consumers seeking information online use it for research.” Therefore, having a digital business model is vital to maintaining a relationship with clients and prospective customers. Being a digital player is more than having a nice website and using encrypted email methods and a CRM. It involves blending your entire practice into a seamless online experience. This makes it easier for agents to handle their book of business. In addition, insurance technology makes it easier for your clients to purchase insurance products.
The Benefit of Insurance Technology #2: Insights from Big Data
Another huge benefit of insurance technology is the insights that agents receive about their customers. Insurance technology analyzes data trends and provides insights that make it easier for insurance agents to understand their customers. Insights powered by insurtech can do more than increase sales among current clients. Insurtech tools are also a powerful way to increase referrals – the most successful leads.
Insights improve the ability to assess risk and recommend policies, automate workflows, manage marketing campaigns, and deliver personalized client experiences. But these insights are more than demographics. Examples of insights from data include when and how clients view information, what they’re saving and what they’re not, and what they review after the sale.
Agents who use insurtech to understand their clients provide recommendations and make suggestions at the appropriate times. This natural process often leads to more sales. Being present and adding value at the right times also improves the relationship between agent and client.
The Benefit of Insurance Technology #3: Better Customer Experience
Most importantly, a key benefit of insurance technology is the ability to give customers the experience they desire. While the last decade focused on technology that made things more efficient, this decade is all about the consumer experience thanks to technology companies like Uber and Amazon who have drastically altered consumer expectations across all markets.
A McKinsey study arddresses rising customer standards by saying that customers want:
- 24-hour access and quick delivery;
- Clear, relevant information about a product’s features, particularly in relation to pricing; and
- Innovative, tailored services designed for the digital age.
Delivering an easy and enjoyable customer experience often results in more product sales and customer loyalty. Clients view their agent as a trusted resource rather than an intermediary. As a result, they are more willing to share important information and life details. They are also more likely to get their network of family, friends, and contacts involved.
Next Steps for Agents
Agents must embrace technology and adapt to customer needs to run a practice that’s relevant in today’s economy. Insurtech improves the way agents communicate, maintain relationships, and better understand when and how to meet their clients’ changing needs.
New insurtech platforms are helping agents overcome these challenges. Platforms like Link by LegacyShield act as a virtual filing cabinet while also promoting secure client-agent communication. The platform also allows clients to add their beneficiaries to their accounts, fully closing the life insurance loop. In addition, agents receive advanced insights so that they can best understand their clients and offer personalized recommendations.
The time to rethink your business model is now. A complete digital platform centered around agent insights and customer experience will distinguish you from the competition. To learn about how Link helps agents check out this blog: A Consolidated Practice Leads to More Client Insights.