Insurance agency functioning on the independent model is becoming the clear choice of millennials. As per the Insurance Journal 2019, Young Agent Survey shows that though 68.1% of young agents think that the industry has been slow to adapt to technology in 25 years from now, 57.1% believe that the independent agency system will be stronger.
The insurance industry is not known for being innovative. It’s all for a reason though, with troves of confidential data, they have to be vigilant to introduce new ways of operating.
But time is changing. Many businesses have changed their ways of providing a better product to their clients, which has made them demand more from other providers. In the current scenario, providing the same level of services as the businesses were before isn’t applicable. Instead, businesses need to remain on top of the competition.
Importance of customer identification
Moreover, there are endless opportunities as an independent insurance agency. But agencies must identify their customers. Only when an insurance agency knows its customers well, they can understand their preferences. Every customer might not like to communicate through the same channels. For example, While I might prefer a direct phone call, you may want to communicate via emails. Hence, an insurance agency should identify the different mediums of technology.
The insurance agency, likewise, needs to utilize tools such as customer relationship management software. Such software’s help insurance agency builds a mutual relationship between the insurance agency and its clients. On the other hand, it helps agents focus on their core competency, which is selling insurance. With the process made more accessible and efficient, the agencies have better chances of growing their book of business.
Benefits of using technology
While it might seem difficult for insurance to innovate, technology is truly a blessing for insurance agents, agencies, and customers. It puts all your information in one place. Insurance agents and agencies can save considerable time by digitalizing their processes and automating their cumbersome fact-checking, analytical tasks. Some insurance agencies have updated themselves to embrace digitalization and mitigate such issues. But most of the insurance agency is still behind in terms of using updated technology.
The first to grow up using technology and welcome the internet is the generation of millennials. According to Forbes, millennials are far more digital-focused than the average consumer. So, to cater to these age groups, we will discuss how an insurance agency can implement technology to create a level of satisfaction.
Before deciding to purchase, millennials enjoy online analysis and comparison of goods and services. Getting the right presence online can be a big attraction for this generation of customers. So, if a service product like insurance is to be bought by your clients, they expect the insurance agency to make them accessible online. Also, for those customers, an insurance agency must ensure an easy process of getting their works done without involving paperwork. Likewise, the insureds expect that they get to view their insurance records and documents online. Hence, modernizing the customer experience is a great way to make the utmost use of technology.
Therefore, as per International Finance Corporation, the insurance industry has consequently reached the point where they have to accept the insurtech or be left behind. Similarly, the power of technology has a lot to do for agencies to perform the task efficiently and expand in the market.
Well, what are your thoughts on the usage of technology by insurance agencies? Do let me know in the comments!