Summary: Agencies must modernize to survive, but where do you start? Here
are four guideposts that can help.
Digital transformation has been a strategic goal across the
insurance industry for years, and, thanks to recent events, there’s never
been a better time to make it an urgent priority. With both customers and
agents shifting toward digital tools for nearly every need over the last few
months, independent agencies are starting to fully recognize the potential of
modernization to improve efficiency, service and profitability.
In fact, new evidence shows agencies that adopt a suite of
best-practice technologies in four key areas of modernization see up to 3X
higher revenue growth compared with the industry average. That represents a
huge potential for even the smallest independent agencies to increase
profitability, expand to new markets and services and re-invest in agency
growth.
For agencies that are ready to make the move but are unsure
where to start, here are four areas of agency modernization that should be your
first priorities:
1. Delivering a modern digital
experience for clients. There’s an app for everything these
days, and consumers have come to expect the convenience, 24/7 access and
self-service capabilities that digital options provide. Agencies that offer
online and mobile app access to policy data, transactions, documents and more
can give their customers the timely, streamlined experience they expect when it
fits their schedule—without having to wait until business hours or playing
phone tag with the agent.
Even better, aside from making your customers’ life easier
with digital access, you can make your job easier, too. Providing a DIY service
eliminates the time your agents have to spend mailing policy ID cards,
processing payments and performing other routine tasks. This gives them more
time to spend working directly with clients providing consultation and risk
advisory services.
2. Efficient agency management. Most
agencies have an agency management system (AMS), but are you fully taking
advantage of it? Many don’t keep up with training on new features or get new
agents formally trained on their platform of record, instead taking a
learn-while-doing approach. That means you could be missing out on some of the
most valuable efficiency and productivity tools available.
Meanwhile, there are also some great workflow automation and
document management systems that can help to further streamline processes and
improve client service. Tools like automated carrier downloads and
multi-carrier submissions processes can substantially improve agent
productivity, once again freeing them to spend more time working directly with
clients.
3. Streamlined market
connectivity. One of the challenges agencies face in delivering
the best service to clients is a lack of real-time data on carrier appetite,
pricing and efficient submissions. As the market shows signs of hardening and
prices start inching up, your clients may begin shopping around. Agencies that
can reach out to more markets faster to get the best coverage options for the
best price will win their business.
Tools like comparative rating and electronic submissions
platforms allow agencies to streamline the process of gathering client
information and get that data to underwriters faster. For example, instead of
separate individual submissions, an agent could input all the data about a new
client once and get results back from multiple carriers at once. And with more
efficient systems for submitting risks, agents can quickly identify which
carriers have an appetite for that business and secure the best protection for
their clients.
4. Unlock the power of data. Individually,
many agencies are likely sitting on an untapped treasure trove of data, and the
industry as a whole has been slow to leverage data analytics to drive business
growth. There have been a number of hurdles to bringing data and analytics into
daily agency business practices, including:
·
Unstructured data trapped in PDF
documents,
·
The lack of a standardized data
model for the industry,
·
Little investment in analytics
resources, and
·
A fear that “data science” will get
in the way of the personal touch the insurance industry is built around
But recently we’ve seen substantial progress in overcoming
these challenges, including technologies that put cross-sell and upsell
opportunities directly in front of agents within the tools they already use
every day. By incorporating user-friendly data analytics into your agency
workflows, agents can quickly act on opportunities to grow sales, prevent churn
and deliver better, more insightful service to clients.
With agency consolidation, market evolution and increasing
client and employee expectations, independent agencies are feeling the pressure
to change. But an ever-broadening field of technology options can make the
process feel daunting and overwhelming. Starting with these four key areas of
modernization and focusing on integrated solutions that work together, you can
chart a course to a more service-oriented, productive and profitable agency.
About
the Author
James Thom leads Vertafore’s corporate development team and
guides the company’s relationship with other insurtech companies through their
Orange Partner Program. follow @ITLupdates for
more stories like this Email James
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