Is Your “Tech Stack” a Spreadsheet? Three Reasons to Invest in Insurtech Now

This put up is a part of a sequence sponsored by AgentSync.

The insurance coverage business has been round for hundreds of years. However that’s no cause your company ought to nonetheless be working prefer it’s 1916! One of many best elements of the fashionable insurance coverage business is its means to supply generational alternatives for hundreds of households. The draw back is that the earlier era’s expertise typically comes with the package deal.

It’s laborious to think about any enterprise working on paper recordsdata and spreadsheets in 2021, however the insurance coverage business is infamous for lagging relating to tech adoption. Likelihood is, at the least just a few folks studying this proper now are feeling very known as out!

We beforehand wrote concerning the kinds of expertise that insurance coverage companies must prioritize in the event that they wish to be enticing to buyers or consumers throughout future M&A exercise. Even when promoting your company is the very last thing in your thoughts, there are nonetheless nice advantages to going digital. Listed below are three of the perfect causes your company ought to put money into insurtech now.

Your rivals are investing in expertise

OK, so peer stress isn’t all the time the perfect cause to do one thing. However on this case, the truth that some insurance coverage companies are rapidly outpacing the business in adoption of expertise has two main implications:

• One: Those that don’t embrace expertise and use it to their benefit will quickly be left behind for individuals who do.
• Two: There’s nonetheless time to be an early(er) adopter and stand out from the gang by utilizing expertise to enhance your corporation processes and shopper expertise.

Now that millennials are the most important age group in the USA, your present and future client-base aren’t going to have persistence for gradual, guide processes. Your company’s future purchasers are digital natives who anticipate a stage of accuracy, transparency, and management relating to their insurance coverage purchases that an old school company merely can’t present.

Millennials apart, the second largest subset of the inhabitants (child boomers) can also be changing into extra tech-savvy by the 12 months. Analysis from 2019 reveals that 68 % of boomers personal a smartphone and 11 % use their smartphone as their major technique of on-line entry. These numbers are undoubtedly larger now, notably as COVID-19 pressured practically everybody to step up their expertise recreation.

The purpose is, virtually nobody nonetheless loves doing issues “the previous method” if meaning slower, much less customized, and unable to be finished from anyplace. In case your company doesn’t undertake insurtech options that present purchasers with the extent of service they need, a competitor positively will.

Your workforce craves higher methods of doing issues

Similar to your potential purchasers will select an company that gives them with a contemporary expertise over one which requires them to retrofit their lives to 1950, your company workers (together with producers and shopper service representatives) need entry to expertise that makes their jobs simpler.

Take into consideration how a lot time your producers spend on duties that aren’t really producing income. Take into consideration how a lot time your shopper companies representatives (CSRs) spend on duties that don’t straight serve prospects. And in the event you aren’t certain how a lot time that’s, we suggest asking them, as a result of we assure they’re doing it.

Not solely is the company shedding cash from producers not promoting and CSRs not specializing in client-retaining relationships, however the staff themselves are pissed off by their lack of productiveness after they spend time on mundane duties.

We all know it appears like a damaged file, however the level can’t be overemphasized: With the getting older insurance coverage workforce and the battle to draw new expertise to the business, expertise performs a key function and acts as a differentiator for the companies that undertake and embrace it.

Expertise can develop your income and scale back bills

Rising your income and lowering your working bills are considerably side-effects of the primary two causes, however we thought it deserved a point out of its personal. On high of serving to improve income and scale back bills just because company workers are working extra effectively and purchasers are renewing 12 months after 12 months, investing in expertise can straight herald new insurance coverage enterprise.

For instance:

• Automating electronic mail outreach and followup takes no extra time on the a part of the folks you pay, and can lead to closing offers which may have in any other case fallen out of your gross sales pipeline.
• Being able to rapidly onboard licensed brokers from totally different states and know that their credentials are legitimate means your company can begin bringing in more cash when these producers begin producing extra rapidly.
• Phrase-of-mouth referrals play a big function in how most unbiased companies discover new purchasers. Instruments now exist to succeed in your present purchasers, ask for referrals, and even put up them throughout the web with none guide effort on the a part of your company. These constructive on-line opinions can lead on to new enterprise when individuals are deciding which company they’d wish to strategy for a quote.

Undoubtedly, there are numerous extra the reason why your company ought to put money into trendy expertise. From attracting extra, and higher, producers to avoiding fines and penalties, adopting expertise on your insurance coverage enterprise is bound to be a stable funding.

Producer licensing and compliance administration is one space the place investing in expertise can have a significant influence. Try a demo to find out how implementing a producer compliance administration system can result in company development.

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